May brings a series of significant events this could significantly influence the trajectory of Bitcoin and the broader crypto market.
These events, ranging from regulatory decisions to economic indicators, appear capable of profoundly influencing market dynamics.
Regulatory and economic indicators on the horizon
This month is marked by crucial dates, starting with an important meeting involving Federal Reserve Chairman Jerome Powell. His upcoming press conference today is particularly noteworthy, following recent economic data showing declining consumer confidence amid persistent wage pressures.
In his previous addressesPowell highlighted ongoing challenges in controlling inflation and the “robustness” of the labor market, which continue to influence expectations for monetary policy.
Additionally, on May 15, the release of the US Consumer Price Index (CPI) for April is highly anticipated. This event is closely followed by the announcement of the decision of the United States Securities and Exchange Commission (SEC) regarding the approval of Spot Ethereum ETFs.
Major May events compiled by WuBlockchain editors include the soon-to-be-released FED FOMC, US CPI in April, Bitcoin Asia Hong Kong conference, and the SEC’s final decision on the ETH SPOT ETF. Unlike April, the conclusion of these events in May was largely… pic.twitter.com/cdr9FPvUJL
-Wu Blockchain (@WuBlockchain) May 1, 2024
The consequences of these events could either dampen or stoke investor enthusiasm, with significant repercussions for market liquidity and volatility.
In particular, the SEC’s response to VanEck’s Ethereum Spot ETF a Bitcoin spot options ETF request on May 23 and a Bitcoin spot options ETF request on May 29 are seen as potential catalysts for the market movement.
Market Impact and Analyst Outlook on Bitcoin
The anticipation of an increase in interest rates continuing for longer than expected before is already having an impact on the cryptocurrency markets.
Bitcoin, for example, saw a sharp decline, plunging more than 6% in just 24 hours, marking one of its lowest points in recent months, at $56,757. This slowdown led to a considerable market sell-off, Coinglass report over $394.82 million in liquidations, affecting 106,104 merchants during the same period.
With his deep understanding of market trends, renowned financial analyst Peter Brandt suggests that Bitcoin could face further declines before any potential recovery.
According to Brandt, Bitcoin could diving into the $40,000 region as part of its market correction phase before possibly embarking on a new bull run.
Brandt also pointed out that despite various market stimulants such as halving events and the launch of spot ETFs in recent years, Bitcoin has struggled to surpass its all-time high prices from three years ago.
Commentary on Bitcoin $BTC I’ve seen dozens of major market tops over the years with charts that looked like this descending triangle.
A simple fact needs to be addressed: Bitcoin has not surpassed the highs reached three years ago despite the halving and ETFs. pic.twitter.com/hq96RrDJkk– Peter Brandt (@PeterLBrandt) April 30, 2024
Featured image from Unsplash, chart from TradingView
