May brings A a series of key events this could significantly impact the trajectory of Bitcoin and the broader cryptocurrency market.
From regulatory decisions to economic indicators, these events appear to have the potential to profoundly impact market dynamics.
Regulatory and economic indicators on the horizon
This month is full of essential dates, starting with an essential meeting with Federal Reserve Chairman Jerome Powell. His press conference today is particularly noteworthy with recent economic data showing withering consumer confidence amid continued wage pressure.
In his previous addressesPowell highlighted ongoing challenges around containing inflation and the “robustness” of the labor market, which continue to weigh on monetary policy expectations.
Moreover, on May 15, the publication of the American Consumer Price Index (CPI) for April is eagerly awaited. This event is immediately followed by the announcement of the US Securities and Exchange Commission’s (SEC) decision to approve Spot Ethereum ETFs.
The most essential May events prepared by WuBlockchain editors include: the soon-to-be published Fed FOMC meeting, the April US CPI index, the Bitcoin Asia Conference in Hong Kong and the final SEC decision regarding the ETH SPOT ETF fund. Unlike April, the end of these events in May was largely… pic.twitter.com/cdr9FPvUJL
— Wu Blockchain (@WuBlockchain) May 1, 2024
The effects of these events could either dampen or inflame investor enthusiasm, which will have a significant impact on market liquidity and volatility.
In particular, the SEC’s reaction to VanEck’s May 23 filing for an Ethereum spot ETF and its May 29 filing for a Bitcoin spot ETF are seen as potential catalysts for market movement.
Market impact and analyst insights on Bitcoin
The expectation of higher interest rates lasting longer than previously expected is already impacting cryptocurrency markets.
Bitcoin, for example, saw a acute decline, falling over 6% in just 24 hours, marking one of its lowest points in recent months at $56,757. This downturn led to significant market liquidation for Coinglass reporting liquidations worth over $394.82 million, affecting 106,104 merchants during the same period.
With a deep understanding of market patterns, renowned financial analyst Peter Brandt suggests that Bitcoin may face further declines before a potential recovery occurs.
According to Brandt, Bitcoin could dive into the $40,000 region as part of the market correction phase before the possible start of a modern growth streak.
Brandt also noted that despite various market stimuli such as halvings and spot ETF launches in past years, Bitcoin has struggled to surpass its peak prices of three years ago.
Comment on Bitcoin $BTC Over the years, I have seen dozens of significant market tops with charts resembling this descending triangle.
A basic fact needs to be resolved – that Bitcoin has not exceeded the highs of three years ago despite halving and ETFs pic.twitter.com/hq96RrDJkk— Peter Brandt (@PeterLBrandt) April 30, 2024
Featured image from Unsplash, chart from TradingView
