Experts conveyed their critical comments about 2 events that will affect the Bitcoin (BTC) price this week! Here are the details…
Experts explained: “Those 2 events that will affect the price of Bitcoin (BTC) this week!”
Things are starting to get interesting again for cryptocurrencies, especially with the increase in volatility over the weekend, investors may face surprises. However, with two major macroeconomic events planned, investors can expect much more.
Levels on Fed Rates this week will be announced on May 3 at 11:30 am. However, the Non-Farm Employment (NFP) will be announced on May 5 at 15:30 and many investors are watching these critical levels closely. Especially recently, experts also stated that these levels and price changes in Bitcoin and the general crypto money market will be critical for investors.
Federal Committee for Open Market Operations (FOMC)
The Federal Open Market Committee’s (FOMC) Fed Rate decision on May 3 will set the tone for this week, but the deciding factor or event will still be NFP.
Experts say the Federal Reserve will likely raise the interest rate by 25 basis points and stick to its plans to curb inflation. While this information is widely known, the event is unlikely to cause any increase in volatility. However, a deviation from the known variable, which is an increase of 25 basis points, will result in a much higher increase in volatility. For example, if the Fed announces a 50 basis point increase, it will undoubtedly trigger a surge.
According to experts, this move will be hawkish and will encourage a stronger US Dollar, causing the stock market and Bitcoin price to fall in the short term. The FOMC conference is something that will cause the markets to move. Federal Reserve Chairman Jerome Powell’s speech after the rate decision is more likely to cause large increases in volatility and trigger a directional move.
Non-Farm Employment (NFP)
The employment report or NFP data release stands out as a key event that plays a crucial role in determining whether the assumed directional move will continue after the FOMC conference. According to experts’ current estimates, NFP is expected to come in lower than expected, but if the deviation between the forecast and actual figures is negative, it could greatly amplify the effects of the rate decision. A low NFP figure will show that the Fed’s plan to reduce inflation by raising interest rates is working.
As we quoted by Kriptokoin.com, every time the Fed raised interest rates in the past year or two, the Bitcoin price fell in the short term but eventually rose. If there is an increase of more than 25 basis points followed by a negative divergence in the NFP numbers, it is likely to push BTC to $36,000.
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