Bitcoin is under pressure ahead of FOMC meeting

Bitcoin has slid below psychologically important $60 000, briefly touching <$57 000.

This latest slide comes after the world's first-ever crypto suffered its largest monthly drop (for April 2024) since the collapse of the FTX exchange.

The decline comes ahead of the Fed’s interest rate decision with a subsequent press conference and two major macroeconomic readings (ISM Manufacturing PMI & JOLTs Job Openings) to be posted later today.

The sentencing of the Binance’s CEO for 4 months in prison has also added to today’s volatility across crypto.

Still persistent inflationary risks in the US impacted the market’s bets on the potential number of interest rate cuts this year.
 

Higher for longer interest rates may deter investors from investing in the riskier assets, including cryptocurrencies.
 

According to the FedWatch Tool the markets imply:
 

• 8.5% probability for the rate cut in June (58.9% - 1 month earlier)
   
• 23.0% probability for the rate cut in July (92.0% - 1 month earlier)
   
• 53.0% probability for the rate cut in September (56.0% - 1 month earlier)

The uncertainty regarding the US’ interest rate policy has also taken a toll on spot BTC ETFs. On April 30th, the total net flows have reached -$162 million.

A total of $182 million in outflows were registered for the month of April across 9 spot BTC ETFs.
 

With halving as one of the major catalysts for the BTC’s bull run in 2024 now gone, market participants may be more attentive towards the macroeconomic landscape and the performance of the BTC spot ETF’s.

 

Key upcoming events that could potentially affect Bitcoin this week:
 

Today – May 1st

• Fed Interest rate decision and press conference
   
• JOLTs Job Openings
   
• ISM Manufacturing PMI
   

Friday – May 3rd

• Non Farm Payrolls
   
• US Unemployment Rate
   
• ISM Services PMI