As risk assets prepare for the United States’ next macroeconomic move, Bitcoin remained near its two-month lows at the Wall Street opening on May 1st. Data from TradingView followed Bitcoin price movements hours after hitting new lows of $56,500 on central crypto exchanges. Investors kept their nervousness in risk assets ahead of the Federal Reserve’s next interest rate announcement and subsequent press conference by Chairman Jerome Powell.
Focus Shifts to the US
After the Quarterly Repayment Announcement (QRA) struck a blow to the US liquidity outlook, market participants hope that the tone following the Federal Open Market Committee (FOMC) meeting will not be overly hawkish. Darius Dale, founder and CEO of risk management firm 42 Macro, wrote in a post shared via X:
“The FOMC statement and Powell’s press conference this afternoon will likely confirm the pricing of a much milder normalization cycle for the USD money market.”
Latest data from CME Group’s FedWatch tool highlighted the likelihood of the Fed keeping interest rates at the current 99% level, underlining the muted expectations for good news. Popular trader CrypNuevo suggested that the worst losses in Bitcoin and altcoin projects are likely over, stating:
“Bitcoin has really had a tough drop, and this process likely prices in everything Jerome Powell will say today.”
What’s Next for Bitcoin?
Amid macroeconomic data, Bitcoin investors observed key Bitcoin price levels after multiple supports were left behind on the chart. Popular investor and analyst Rekt Capital commented:
“This current Bitcoin pullback is slowly turning into almost a 50-day retreat.”
An accompanying chart compared Bitcoin price pullbacks throughout the bull market that began early in 2023. Rekt Capital characterized the recent downward movement as typical, sharing:
“Typical pullbacks last 2-3 weeks, while longer ones can last up to two months.”
Meanwhile, Filbfilb, co-founder of DecenTrader, predicts a potential Bitcoin price that follows the footsteps of gold in recent years. The notable figure compared the two assets in a post titled X, stating:
“I think we can go lower from this chart, but if it shows an upward trend in the coming months, it could generally be like this.”
