Although all eyes are on the Federal Open Market Committee (FOMC) meeting to be held on Wednesday this week, many macro data can deeply affect the crypto money market. Along with that, experts have announced dates that could affect the price of Bitcoin and altcoins throughout the week! Here are the details…
Experts explained: “Here are the critical dates for Bitcoin and Altcoins!”
On Tuesday, May 2, the U.S. Bureau of Labor Statistics will release the JOLT Jobs report. In March, the number of open jobs fell below 10 million for the first time since May 2021. As of April 04, a total of 9.93 million vacancies were reported.
According to estimates, there were 9.683 million jobs in April, indicating further slowdown in the US labor market. If employment data, which proves the resilience of the US economy, comes in better than expected, US stock prices can be expected to continue to perform well, experts say. Similarly, the crypto market is likely to benefit from good labor market data.
On Wednesday, May 3, 2023, the focus will be on the US Federal Reserve’s (Fed) interest rate decision. According to the latest data from the CME FedWatch tool, 84.5 percent expect a 25 basis point rate hike to 5.25 percent. However, it seems likely that this decision has already been priced in.
All eyes on Fed Chairman Jerome Powell’s press conference!
All the attention will be at the 14:30 FOMC press conference, where Fed Chairman Jerome Powell will reveal his views on the coming months. During the press conference, volatility is expected to increase in the Bitcoin and crypto markets. The market is waiting for a comment from Powell that this is the last rate hike and the first rate cuts will be made this year. But the latter possibility seems very unlikely, especially given that Powell philosophized about two rate hikes this year and the continuation of tight monetary policy in a conversation with the fake Volodymyr Zelenskyy. However, experts say it may be extremely interesting to see how Fed Chairman Powell responds to the FDIC’s immediate response to First Republic Bank.
Powell remains under pressure from continued problems in the US banking sector and the continuing worsening credit crunch. Goldman Sachs therefore thinks:
We expect the FOMC to forecast a pause in June but remain in a hawkish trend, signaling that it will stop sooner than originally anticipated as bank stress could cause a credit tightening.
On Friday, May 5, 2023, eyes will once again be on the US labor market. The Bureau of Labor Statistics will release April nonfarm payroll numbers. Finally, the numbers seem to have deteriorated somewhat. The projected 180,000 new jobs for April is well below the average for the past few months. Shortly before the start of the year, 517,000 new jobs were created. Confirming this forecast will make the risk of a recession in the US more likely in the coming months and a corresponding negative reaction in the financial markets is likely. On the other hand, a positive surprise could be the catalyst for a rally in the crypto market.
In addition, at 8:30 am the US unemployment rate for April will be announced. According to experts, the estimated rate is 3.6 percent. The unemployment rate fell from 3.6 percent to 3.5 percent in March. Fed Chairman Powell stressed several times that a possible US recession could also push the unemployment rate towards 4.5 percent. Therefore, the unchanged unemployment rate may be welcomed by the market.
Other critical events that may take place this week drew attention
According to experts, a positive reaction may come from the stock market this week, as it was last week. 25% of S&P 500 companies announced their earnings. Following strong quarterly figures from internet giants Microsoft, Alphabet and Amazon, the US stock market closed the last trading week on a positive note. According to experts, the crisis of the first Republic may also be important. According to the data, the next domino in the banking system could be a catalyst for Bitcoin (BTC). According to reports from various sources, the sale of First Republic Bank has already taken place. Two of the most promising bidders are reportedly JP Morgan and Bank of America. Instantly, Bitcoin (BTC) price is trading at $ 28,527.33.
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