Investors in the cryptocurrencies market are on tenterhooks as they await the Federal Open Market Committee’s (FOMC) interest rate decision, amid growing concerns over possible delays in the Fed’s rate cut plans. Notably, recent economic indicators, including US GDP and Personal Consumption Expenditure (PCE) inflation data, have signaled a possible hawkish stance by the Fed, adding to concerns.

Cryptocurrencies focused on FOMC decision and other economic events

As the crypto market braces for volatility, attention is focused squarely on the FOMC interest rate decision scheduled for May 1st. Investors are eager to glean information from Fed Chairman Jerome Powell’s next press conference, which is expected to shed light on the central bank’s future policy trajectory. According to the CME FedWatchTool, there is a 97.6% chance that the Fed will keep the interest rate unchanged, while market experts expect a further delay in rate cuts.

Meanwhile, some other major economic events scheduled throughout the week, including the release of consumer confidence data and US trade deficit figures, will offer crypto market traders vital clues about the US economic situation. For context, May 2 marks the release of US Trade Deficit and Productivity data, offering insights into the health of the country’s economy. Then on May 3, the US employment report for April will be released, which is vital for understanding labor market dynamics during the central bank’s rate adjustments.

Crypto market supports volatility

The latest data from the Bureau of Economic Analysis revealed that GDP growth in the first quarter fell short at 1.6% against market expectations of 2.5%. This disappointing performance raised concerns over inflationary pressures. In addition, the unexpected rise in the Core PCE Price Index from 2.0% to 3.7% and PCE inflation from 1.8% to 3.4% in Q1 further dampened crypto market sentiment.

Simultaneously, March Core PCE inflation excluding food and energy prices rose by 0.3% mom and 2.8% yoy, beating market forecasts. Such inflation increases raised concerns over the potential delay in the Federal Reserve’s policy rate cut plans and contributed to the instability in the crypto market. Meanwhile, the crypto market has recently gone through a volatile trading period due to gloomy economic data and significant Bitcoin ETF outflows. It is noteworthy that the Bitcoin ETF recorded outflows for three consecutive days last week until April 26.

Follow us to be instantly informed about breaking news Twitter’Also, Facebookand InstagramFollow them on Telegram and Youtube join our channel.