With the latest GDP & PCE figures raising doubts about a possible delay in the Fed's rate-cutting plans, the cryptocurrency market is anxiously awaiting the FOMC decision on interest rates.

Amidst mounting concerns about possible setbacks in the Federal Reserve's rate-cutting ambitions, cryptocurrency investors are nervously awaiting the FOMC's interest-rate decision.

Notably, worries have been raised by recent economic indicators, such as the GDP and inflation figures for personal consumption expenditures (PCE), which may indicate that the Fed may adopt a more hawkish approach.

Emphasis on Other Economic Events and the FOMC Decision

With the cryptocurrency market anticipating turbulence, all eyes will be focused on the FOMC interest-rate announcement, which is set for May 1. Investors are excited to learn from the press conference that followed from Federal Reserve Chair Jerome Powell was anticipated to provide insight into the central bank's future policy direction.

The CME FedWatchTool indicates that there is a 97.6% chance that the Federal Reserve will maintain its current interest rate, despite market observers expecting additional delays in rate reductions.

Meanwhile, a number of other significant economic events that are planned for this week, such as the publication of consumer confidence data and U.S. trade deficit statistics, will provide crucial hints on the state of the American economy to traders in the cryptocurrency market.

To put things in perspective, U.S. Trade Deficit and Productivity figures, which provide information on the state of the country's economy, are released on May 2. The U.S. employment report for April will then be released on May 3, which is important information for comprehending the dynamics of the labour market.

amid central bank interest rate adjustments, Crypto Market Braces For Volatility

The latest data from the Bureau of Economic Analysis revealed concerning figures, with first-quarter GDP growth falling short at 1.6% against market expectations of 2.5%.

This disappointing performance has heightened worries about inflationary pressures. In addition, the unexpected surge in the Core PCE Price Index from 2.0% to 3.7% in Q1 and a rise in PCE inflation from 1.8% to 3.4% has further dampened the crypto market sentiment.

Simultaneously, the Core PCE inflation for March, excluding food and energy prices, rose 0.3% MoM and 2.8% annually, surpassing market forecasts.

Such inflationary spikes have fueled apprehensions about a potential delay in the Federal Reserve’s policy rate cut plans, adding to crypto market instability.

Meanwhile, the crypto market has gone through volatile trading lately, amid gloomy economic data, and significant Bitcoin ETF outflows. Notably, the Bitcoin ETF has noted outflow for the three consecutive days through April 26 last week.