Next Week’s Top Macro Events: A Turning Point For The Crypto Market
As we approach the end of April, market participants are eagerly awaiting a new week filled with a series of potentially impactful macro events. From central bank interest rate decisions to crucial economic data releases, these events could have a significant impact on the stock and crypto markets.
These Macro Events May Drive Crypto Market’s Trend Next Week!
Over the past several days, the crypto market has experienced dramatic fluctuations amid concerns surrounding potential interest rate hikes in the coming week. However, the landscape swiftly shifted as the collapse of First Republic Bank sent ripples through the market. As investors brace themselves for the week ahead, the anticipation of forthcoming macro events is stoking volatility and creating an electrifying atmosphere in the crypto sphere.
US Federal Reserve’s Interest Rate Decision (2-3 May)
As the Federal Reserve continues on its path of monetary policy normalization, the potential impact of interest rate hikes on the crypto market has become a subject of intense debate.
Next week, the US Federal Reserve is set to convene for a pivotal meeting where voting on potential interest rate hikes will take center stage.
The highly anticipated FOMC gathering will take place on May 2-3, culminating in Fed Chairman Powell’s announcement of the decision on May 3. Market participants are eagerly awaiting the likely outcome – a 25 basis point rate increase – at this crucial May FOMC event. Subsequently, the Fed is anticipated to pause its rate hike trajectory, starting with the June 13-14 FOMC meeting.
Hence, a rise in interest rates may significantly plunge the crypto market and strengthen the dollar. Moreover, the global crypto market cap can witness massive liquidation from investors.
ECB Monetary Policy (4 May)
The European Central Bank (ECB) plays a vital role in shaping the Eurozone’s economic landscape through its monetary policy and interest rate decisions. As the crypto market continues to interact with traditional financial systems, the potential influence of ECB policy on digital assets is becoming increasingly relevant.
As the European Central Bank gears up for its forthcoming meeting on May 4, it may be compelled to enact another interest rate increase if inflation persists in following the economic forecasts established in March.
Anticipating the ECB’s moves, market projections suggest a 25-basis point hike for the 3% deposit rate during the May 4 meeting, followed by an additional 25 basis point increase in mid-2023.
US Non-Farm PayRoll (5 May)
The US Non-Farm Payrolls (NFP) report, a crucial indicator of the nation’s economic health, provides insights into the change in the number of employed people, excluding the agricultural sector.
A strong NFP report typically boosts market confidence and fosters risk-taking, while a weaker-than-expected report can trigger risk aversion.
US Unemployment Rate (5 May)
In March, the U.S. economy consistently generated jobs at a robust rate, driving the unemployment figure down to 3.5%. This trend indicates an enduring tightness in the labor market. More robust growth on 5 May can impact the strength of the U.S. Dollar, as better-than-expected labor market data can lead to a stronger greenback. Since cryptocurrencies are often priced in USD, fluctuations in the dollar’s value can affect crypto prices.