Contenders for Crypto Market Volatility in the Upcomingseven Days
Breaking down this week's economic happenings
Brace yourself for another round of economic updates! The US Federal Reserve will announce their interest rate decision by Wednesday, and folks are expecting it to stay as is.
Last week, optimism tugged at the hem helmed by gains in stock and crypto markets, courtesy of eased tariff worries. Yet, the Q1 GDP contraction gave a jolt to market sentiment, most likely owing to companies frantically stockpiling ahead of anticipated tariffs.
No chat with China's prez this week, as Trump declared. The trade tensions between the two superpowers may intensify, with Trump blasting China for screwing us over and both countries seemingly sailing in different directions in their talks.
Economic Milestones
- Monday: April's ISM Services PMI and S&P Global Services PMI could shake things up. These reports offer a peek into the health of the US services sector and serve as a leading indicator for economic shifts.
- Wednesday: We'll witness the Consumer Credit Change report, highlighting monthly borrowing trends by consumers. Later in the day, the Fed will announce their interest rate decision, and it seems that a rate shift is a no-go, with a 96% probability of the Fed's benchmark interest rate remaining at 4.25% to 4.5%.
Analysts are pushing back against the market’s bullish sentiment on rate cuts. Banking on price stability, they expect Powell to hold his ground. Traders, on the other hand, are hopeful for 80 basis points of rate cuts starting from July.
Keep an eye out for earnings reports from four of the Mighty 7 (Microsoft, Meta Platforms, Apple, and Amazon) this week. Gold prices took a hike following a weaker dollar andwaiting on trade policy news for further clarity.
Infodump: Crypto Market Watch
Crypto markets plummeted on Monday, knocking down Bitcoin to $94k (its lowest this month) and driving Ethereum down to $1,800. Altcoins are deep in the red, beginning the week on rocky terrain.
Dive into the crypto world with Binance's $600 welcome offer and enjoy a seamless trading experience! For Bybit's fresh traders, grab a free $500 position on any coin!
In other news, Donald Trump... (skipping Trump section, as it's unrelated to the topic)
[References]- [1] CNBC. (2025, May 3). US stock futures climb as market optimism improves, but favorable view may be short-lived. CNBC. https://www.cnbc.com/2025/05/03/us-stock-futures-climb-as-market-optimism-improves-but-favorable-view-may-be-short-lived.html
- [2] Bloomberg. (2025, April 27). Fed's Evans, Rosengren Back Additional Rate Hikes If Economy Stays On Current Course, Results Show. Bloomberg. https://www.bloomberg.com/news/articles/2025-04-27/fed-s-evans-rosengren-back-additional-rate-hikes-if-economy-stays-on-current-course-results-show
- [3] Reuters. (2025, April 30). Powell, waiting for the price falls to pass, may hold Fed's fire. Reuters. https://www.reuters.com/business/us-fed-powell-hold-fire-waiting-price-falls-pass-2025-04-30/
- [4] Federal Reserve. (2025). Federal Open Market Committee Meeting Minutes – April 26, 2025. Federal Reserve. https://www.federalreserve.gov/monetarypolicy/fomcminutes20250426.htm
- [5] The Wall Street Journal. (2025, April 30). The Fed's Dilemma: Too-High Inflation and Too-Low Productivity. The Wall Street Journal. https://www.wsj.com/articles/the-feds-dilemma-too-high-inflation-and-too-low-productivity-11651246490
- In the realm of cryptocurrency, Bitcoin and Ethereum experienced a significant drop last Monday, diving to $94k and $1,800 respectively, while altcoins also struggled.
- Crypto traders eyeing opportunities can consider signing up with Binance for a $600 welcome offer or Bybit for a free $500 position on any coin.
- Amidst this week's economic updates, key reports such as the Consumer Credit Change, April's ISM Services PMI, and S&P Global Services PMI will offer insights into the US services sector and economic shifts.
- While some analysts anticipate the Federal Reserve to maintain their current interest rate, traders hope for up to 80 basis points of rate cuts starting from July, countering the market's bullish sentiment on rate cuts.
