May brings a series of pivotal events that could significantly influence the trajectory of Bitcoin and the broader crypto market.
These events, ranging from regulatory decisions to economic indicators, appear capable of profoundly swaying market dynamics.
Regulatory And Economic Indicators On The Horizon
This month is marked by crucial dates, starting with a significant meeting involving Federal Reserve Chair Jerome Powell. His upcoming press conference today is particularly noteworthy, following recent economic data showing a dip in consumer confidence amidst persistent wage pressures.
In his previous addresses, Powell has highlighted ongoing challenges in curbing inflation and the “robustness” of the job market, which continue to influence monetary policy expectations.
Moreover, on May 15, the release of the US Consumer Price Index (CPI) for April is eagerly anticipated. This event is closely followed by the announcement of the United States Securities and Exchange Commission’s (SEC) decision on approving Spot Ethereum ETFs.
Major events in May compiled by WuBlockchain editors include the soon-to-be-released FED FOMC, the US CPI in April, the Hong Kong Bitcoin Asia Conference, and the SEC’s final decision on the ETH SPOT ETF. Unlike April, the conclusion of these events in May has been largely… pic.twitter.com/cdr9FPvUJL
— Wu Blockchain (@WuBlockchain) May 1, 2024
The outcomes of these events could either dampen or ignite investor enthusiasm, with significant repercussions for market liquidity and volatility.
Particularly, the SEC’s response to VanEck’s Ethereum spot ETF application on May 23 and a Bitcoin spot option ETF application on May 29 are seen as potential catalysts for market movement.
Market Impact And Analyst Insights On Bitcoin
The anticipation of higher interest rates continuing longer than previously expected is already impacting the cryptocurrency markets.
Bitcoin, for example, has witnessed a sharp decline, plunging by over 6% in just 24 hours, marking one of its lowest points in recent months at $56,757. This downturn has led to considerable market liquidation, with Coinglass reporting over $394.82 million in liquidations, affecting 106,104 traders within the same period.
With his deep understanding of market patterns, renowned financial analyst Peter Brandt suggests that Bitcoin might face further declines before any potential recovery.
According to Brandt, Bitcoin could dip into the $40,000 region as part of its market correction phase before possibly embarking on a new bullish run.
Brandt also pointed out that despite various market stimulants such as halving events and spot ETF launches in past years, Bitcoin has struggled to surpass its peak prices from three years ago.
Comment on Bitcoin $BTC I have seen dozens of significant market tops over the years with charts that looked like this descending triangle. A simple fact needs to be resolved — that Bitcoin has not exceeded the tops made three years ago despite the halving and ETFs pic.twitter.com/hq96RrDJkk
— Peter Brandt (@PeterLBrandt) April 30, 2024
Featured image from Unsplash, Chart from TradingView
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