Given that the Fed's interest rate will remain steady despite high inflation and a weak GDP report, there will probably be more selling pressure on the price of bitcoin.

The whole bitcoin market was still under pressure throughout the last weekend. Another 2.2% decline saw the price of Bitcoin drop below $62,500.

However, the top ten altcoins have corrected by a combined total of 4–10%, indicating even more selling pressure in the altcoin space.

Fed's May 1 interest rate decision

The Federal Reserve's much awaited interest rate decision, which is set for May 1, is the first of this week's major economic events for the US.

There is a 95.6% chance, according to analysts, that the Fed will keep interest rates where they are. Furthermore, on May 3, the United States will unveil the April unemployment rate. Expectations for a U.S. interest rate reduction this year have dwindled to just one.

However, concerning data from the U.S. has emerged this week.

A weaker-than-expected GDP print suggests a slowdown in the economy, while higher Core PCE figures signal persistent inflation issues, posing challenges for the Federal Reserve.

While there are worries that the U.S. may enter a stagflation scenario characterized by negative GDP growth and high inflation, this remains speculative at present.

Market sentiment has shifted accordingly, with expectations now pricing in only one interest rate cut for 2024. This contrasts sharply with initial forecasts of seven cuts at the year’s outset and three in March.

What’s Ahead for Bitcoin and Altcoins?

In the recent market update, Bitcoin (BTC) volatility experienced a significant compression, dropping from 70% to 50%.

Concurrently, the downside skew in Ethereum (ETH) risk reversals has intensified to -13% in the front-end, suggesting potential doubts regarding further delays in the SEC’s approval of spot Ether ETFs.

This raises the question, has the market's attitude changed, or is this just a temporary lull in a longer positive trend? Amidst these uncertainty, focus shifts to a possible bright spot on the horizon: next week's start of trading for Hong Kong spot Ethereum and Bitcoin ETFs.

As market players view this event as a possible entry point for the inflow of institutional capital from Asia into the cryptocurrency field, anticipation is growing.