Bitcoin Hovers Near Two-Month Low; Markets Await Federal Reserve's Interest Rate Decision
Summary:
Bitcoin (BTC) continues to hover near two-month lows, trading at $56,500 on Bitstamp. The cryptocurrency market remains on edge ahead of the Federal Reserve's pending interest rates updates and subsequent press conference from Chair Jerome Powell. The market hopes for a subdued policy normalization cycle. However, despite the odds of the Fed holding rates at the current levels being at 99%, some suggest the heaviest losses for Bitcoin and altcoin might be over. The article advises independent research before making investment decisions.
As Wall Street commences activity for May 1, Bitcoin (BTC) remains hovering around a two-month low, while risk asset markets await the U.S.'s next economic move. BTC's volatile performance was most recently noted when it hit a new low, trading at $56,500 on Bitstamp. This comes as financial markets remain unstable, with attention turning to the upcoming announcement concerning Federal Reserve interest rates and Jerome Powell's ensuing press conference.
The recent Quarterly Refunding Announcement (QRA) has left significant impact on the liquidity perspective of the U.S. market. Consequently, market players are hopeful that the Federal Open Market Committee's (FOMC) meeting will not take an excessively hard-line approach. Darius Dale, 42 Macro's founder and CEO, commented on the meeting's outlook, predicting an affirmation of the USD money market's anticipation of a subdued policy normalization cycle.
Fresh information from CME Group's FedWatch Tool reinforces the dull anticipations for positive news, indicating a 99% probability that rates will remain unchanged. However, CrypNuevo, a renowned trader, takes a more positive stance, expressing a belief that Bitcoin and altcoin's heaviest losses might be over.
Market updates from trading firm QCP Capital have hinted at potential surprise turns for risk-prone sentiments, triggered by both Powell's decision and the QRA outcomes. Bitcoin traders are carefully monitoring significant BTC price points following several lapses.
Rekt Capital, a prominent trader and analyst, has noted a gradual shift in Bitcoin's retracement, extending it to nearly 50 days. The decline in BTC price, which so far exceeds 20%, is viewed as "typical" during such an extensive bull market that began in 2023.
DecenTrader's co-founder, Filbfilb, has projected a recovery for Bitcoin, drawing parallels with the trajectory of Gold's performance in recent years. However, these projections remain uncertain, and it's casually advised for readers to conduct their independent research before making a decision, as every investment encompasses risk.
Published At
5/1/2024 5:09:58 PM
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