Bitcoin’s price has been fluctuating amidst market volatility. On May 2, Bitcoin struggled to maintain its $28,000 support after the month opened to multiday lows. The previous day’s Wall Street open brought the latest wave of downside volatility, with the pair dipping below $27,700. This followed a leg lower immediately after the weekly and monthly close, with $30,000 and upward feeling increasingly out of reach.
Market Participants Remain Cautious Amidst the May 3 Federal Reserve Decision on Interest Rate Policy
Market participants’ Bitcoin price targets reflected caution as Bitcoin’s price continued to fluctuate. Michaël van de Poppe, founder and CEO of trading firm Eight, argued that a rematch with both $25,000 and $30,000 was still on the table. “Breaking through $28.4K and we could be back to $30K in a few days. Not breaking and folding coming days, $25K next. Big volatility on the horizon.” Referring to the May 3 Federal Reserve decision on interest rate policy, a further post described Bitcoin as being “in sideways territory, where bears and bulls have arguments for both biases.” Van de Poppe added, “Lots of fear going into the event of the FED tomorrow, probably unwarranted, but we’ll see. Expecting slightly deeper.”
In terms of the Fed event itself, little was left to the imagination, with market sentiment beyond crypto pricing in an almost guaranteed 0.25% rate hike. The odds on May 2, according to CME Group’s FedWatch Tool, stood at 97.4%. This would copy the Fed’s March decision, which was accompanied by trouble in the United States banking sector. May 1 saw multiple local lenders shed value in an environment strongly reminiscent of six weeks prior. However, unlike then, Bitcoin appeared in no mood to capitalize on the fallout.
As Bitcoin struggles to maintain support amidst market volatility, market participants remain cautious amidst the May 3 Federal Reserve decision on interest rate policy. Michaël van de Poppe, founder and CEO of trading firm Eight, argues that a rematch with both $25,000 and $30,000 is still on the table, with big volatility on the horizon. While little is left to the imagination regarding the Fed event, market sentiment beyond crypto pricing in an almost guaranteed 0.25% rate hike.