Will May Make Or Break Bitcoin? Crucial Events To Watch This Month

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Bitcoin (BTC)
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May brings a series of pivotal events that 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 swaying market dynamics.

Regulatory And Economic Indicators On The Horizon

This month is marked by crucial dates, starting with a significant meeting involving Federal Reserve Chair Jerome Powell. His upcoming press conference today is particularly noteworthy, following recent economic data showing a dip in consumer confidence amidst persistent wage pressures.

In his previous addresses, Powell has highlighted ongoing challenges in curbing inflation and the “robustness” of the job market, which continue to influence monetary policy expectations.

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Moreover, on May 15, the release of the US Consumer Price Index (CPI) for April is eagerly anticipated. This event is closely followed by the announcement of the United States Securities and Exchange Commission’s (SEC) decision on approving Spot Ethereum ETFs.

The outcomes of these events could either dampen or ignite investor enthusiasm, with significant repercussions for market liquidity and volatility.

Particularly, the SEC’s response to VanEck’s Ethereum spot ETF application on May 23 and a Bitcoin spot option ETF application on May 29 are seen as potential catalysts for market movement.

Market Impact And Analyst Insights On Bitcoin

The anticipation of higher interest rates continuing longer than previously expected is already impacting the cryptocurrency markets.

Bitcoin, for example, has witnessed a sharp decline, plunging by over 6% in just 24 hours, marking one of its lowest points in recent months at $56,757. This downturn has led to considerable market liquidation, with Coinglass reporting over $394.82 million in liquidations, affecting 106,104 traders within the same period.

BTC price is moving sideways on the 4-hour chart. Source: BTC/USDT on TradingView.com

With his deep understanding of market patterns, renowned financial analyst Peter Brandt suggests that Bitcoin might face further declines before any potential recovery.

According to Brandt, Bitcoin could dip into the $40,000 region as part of its market correction phase before possibly embarking on a new bullish run.

Brandt also pointed out that despite various market stimulants such as halving events and spot ETF launches in past years, Bitcoin has struggled to surpass its peak prices from three years ago.

Featured image from Unsplash, Chart from TradingView





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