The Federal Reserve’s interest rate decision and employment statistics may bring volatility in May’s first week, with a possible rate increase of 0.25%. This could impact Bitcoin and the market, as investors brace for an unpredictable time.
As May’s first week begins, market participants prepare for a potentially volatile time period. This is because the Federal Reserve is set to announce its interest rate decision on Wednesday, and employment statistics will be released on Friday.
The likelihood of a rate increase of 0.25 percentage points is 86.6%, up 3% from the previous Friday, according to the FedWatch Tool from the CME Group. This indicates that there is a strong likelihood that the Fed will really raise interest rates by 0.25% during its announcement.
The FedWatch Tool from CME Group indicates an 86.3% chance of a 0.25% rise.
The Fed’s decision may or may not have an impact on Bitcoin, the most well-known cryptocurrency in the world. However, the price at which Bitcoin is currently trading could mean that investors are taking the rate increase into account before the Fed makes its announcement.
Will the 50-day moving average of Bitcoin hold?
Since last Friday, Bitcoin has displayed a bullish mat-hold pattern, with the parent candle staying within Thursday’s trading range, indicating the anticipated market volatility this week.
Although the current price action has rejected the candlestick pattern, it typically denotes a bullish outcome. It remains to be seen whether Bitcoin will maintain its position or increase during Monday’s trading session.
After falling from the $29,000 mark, BTC/USD has been circling around $28,600.
The 50-day simple moving average, which is now near $28,150, may be of interest to traders if Bitcoin confirms the breakdown on the daily timeframe. Bitcoin may be in a longer-term decline if it drops below this level.
Supports and resistances are shown on a daily chart for bitcoin.
On the charts, Bitcoin is currently experiencing a test of support near the $28,690 region. At $31,418 and $35,593, there is still more upward resistance. On the other hand, a support level of $25,772 is also available.
On the other hand:
- The future trajectory of interest rates is still unpredictable, which might have an influence on Bitcoin and the broader market even though a 0.25% interest rate increase is anticipated.
- Bitcoin has survived prior Fed interest rate increases, indicating that its impact from the Fed’s decision may not be as great as some may believe.
- Ultimately, given the wide range of variables that can influence the cryptocurrency market, the Fed’s decision may not be the only factor influencing Bitcoin’s price changes.
Although a 0.25% increase in interest rates by the Federal Reserve may seem insignificant, it could have a big impact on the cryptocurrency industry. The Fed’s decision is likely to have an impact on Bitcoin because it is the most widely used cryptocurrency in the world. This decision may have repercussions for the entire cryptocurrency market.