Crypto market investors are nervous awaiting Federal Open Market Committee (FOMC) interest rates decision, Amid growing concerns that the US Federal Reserve's interest rate cut plans may be delayed. In particular, recent economic indicators such as U.S. GDP and personal consumption expenditure (PCE) inflation statistics have exacerbated concerns and suggested the Fed may take a hawkish stance.
Keep an eye on FOMC decisions and other economic events
Attention is gathering as the virtual currency market prepares for volatility fixed in a straight line Investors were eager to glean insights from Federal Reserve Chairman Jerome Powell's subsequent press conference, which is expected to shed light on the central bank's future policy trajectory.
According to the CME FedWatch tool, there is a 97.6% chance the Federal Reserve will keep interest rates unchanged, and market experts expect further delays in cutting rates. Meanwhile, several other important economic events are scheduled for this week. release of Consumer confidence data and US trade deficit figures will provide crypto market traders with important clues about the US economic situation.
For context, May 2nd marks the release of US trade deficit and productivity data, providing insight into the health of the US economy. Then, on May 3, the US employment statistics for April will be released, which is extremely important for understanding trends in the labor market amid central bank interest rate adjustments.
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Cryptocurrency market braces for volatility
The latest data from the Bureau of Economic Analysis revealed a related figure: first-quarter GDP growth fell short at 1.6%, compared to market expectations of 2.5%. This disappointing performance raised concerns about inflationary pressures. Additionally, the unexpected rise in the core PCE price index from 2.0% to 3.7% in the first quarter and the rise in PCE inflation from 1.8% to 3.4% further cooled crypto market sentiment.
At the same time, the core PCE inflation rate in March, which excludes food and energy prices, rose 0.3% month-on-month and rose 2.8% annually, higher than market expectations. This spike in inflation has heightened concerns that the Federal Reserve's plans to cut interest rates could be delayed, further increasing volatility in the crypto market.
On the other hand, the virtual currency market experienced unstable trading recently, in a gloomy economic situation data, And there was a huge outflow of Bitcoin ETFs. Notably, Bitcoin ETFs recorded outflows for three consecutive days ending on April 26 last week.
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