This week is full of important events that could affect the cryptocurrency sector. Here’s a breakdown of what you should keep an eye on.
On May 7, the Federal Reserve will announce its decision on interest rates, which could impact both financial and crypto markets. The Fed is expected to maintain interest rates at 4.25-4.5%. President Trump’s call for a rate cut, citing strong job numbers and falling prices, may influence the decision.
Investors will be closely watching for comments from the Fed Chair, especially regarding U.S. tariff policies. In the last meeting, the Fed noted steady economic growth and low unemployment, but also high inflation and increased uncertainty. After the last rate update, Bitcoin’s price dropped slightly.
On the same day, Ethereum’s Pectra upgrade will be implemented, bringing 11 improvements aimed at enhancing wallet use and recovery, and increasing the maximum stake for one node.
Moving on to May 8, the U.S. Initial Jobless Claims report will offer insights into the labor market’s health. Fewer claims indicate a strong economy, while more claims suggest a weaker economy.
On May 13 and 15, the U.S. will release the Consumer Price Index (CPI) and Producer Price Index (PPI) data, respectively. These reports are crucial inflation indicators for traders and policymakers. In March, the CPI dropped by 0.1%, while Core CPI rose by 0.1%, causing Bitcoin’s price to rise slightly.
In the latest PPI report, there was a 0.4% month-over-month decline, leading to a 4% increase in Bitcoin’s price. Bitcoin has experienced fluctuations, dropping below $94,000 ahead of the Fed decision and potentially falling further in the coming days.
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