Bitcoin: Key Events That Might Impact Crypto Market in May

As May begins, the crypto community buzzes with anticipation for events that could impact Bitcoin and the broader crypto market. Wu Blockchain highlights a few of these key events with timelines in May. 

Traders are anticipating the Fed’s interest rate decision on Wednesday, May 1. The central bank is widely expected to keep interest rates unchanged. The market will be searching for clues from Fed Chair Jerome Powell on what has to happen before rates may be reduced. 

Major events in May compiled by WuBlockchain editors include the soon-to-be-released FED FOMC, the US CPI in April, the Hong Kong Bitcoin Asia Conference, and the SEC’s final decision on the ETH SPOT ETF. Unlike April, the conclusion of these events in May has been largely… pic.twitter.com/cdr9FPvUJL— Wu Blockchain (@WuBlockchain) May 1, 2024

This week’s meeting, which includes a press conference by Powell, comes after economic data revealed a drop in consumer confidence and continued wage pressures. The last time Powell spoke, he mentioned the lack of additional progress in taming inflation as well as the job market’s continued strength. The latest data, together with expectations for a strong jobs report on Friday, are unlikely to cause him to rethink.

On May 15, the U.S. is anticipated to release the April CPI. This month also, the crypto community is awaiting the potential approval of Spot Ethereum ETFs by the United States Securities and Exchange Commission (SEC). A positive outcome might trigger buying pressure on the market.

The SEC is anticipated to respond to VanEck’s ETH spot ETF application on May 23, followed by the BTC spot option ETF application on May 29.

Bitcoin fell about 9% on Wednesday, marking its worst monthly performance in April since late 2022, as investors yanked money out of cryptocurrency. Bitcoin fell to an intraday low of $56,500, extending its losses into the second day from highs of $64,727. 

The possibility of higher-for-longer interest rates seems to be impacting cryptocurrencies, as evidenced by deeper Bitcoin losses.

Bitcoin fell about 16% in April, as enthusiasm for U.S. spot-Bitcoin exchange-traded funds subsided after previously driving the token to new highs. Bitcoin’s price is now 22% lower than its March high of $73,803, indicating a bear market.