Overview
In today’s Crypto Daybook, we present an important snapshot regarding the market’s focus on the upcoming comments from Federal Reserve Chairman Jerome Powell as the Federal Open Market Committee (FOMC) convenes. Analysts are expecting rates to remain steady with significant emphasis on Powell’s insights into future economic policies.
Economic Insights
The CME’s FedWatch tool indicates a 97.6% probability that interest rates will remain unchanged. Similarly, traders on Polymarket give it a 98.3% chance, focusing the spotlight on the economic outlook.
Bankinter warns against expecting a rally in risk assets, citing reduced shipping activity from China due to tariffs and anticipates Powell’s remarks to reflect a cautious stance regarding inflation.
Geopolitical Tensions
Recent military escalations between India and Pakistan are contributing to a cautionary atmosphere in the market. India has initiated operations in response to terrorist activities, heightening tensions in the region.
Market Movements
Despite these tensions, there are positive indicators in cryptocurrency markets. Bitcoin is showing a growth of 3% over the last 24 hours. Meanwhile, Ethereum has launched its significant ‘Pectra’ upgrade aimed at enhancing its infrastructure.
Upcoming Events
- May 8: Sentencing of Alex Mashinsky, founder of the defunct Celsius Network, will take place in the U.S. District Court.
- May 12: A U.S. SEC roundtable on the intersection of traditional finance and DeFi will be held.
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Summary
The upcoming decisions by the Federal Reserve, combined with international tensions, could greatly influence both markets and economic policies. As we move forward, analysts and investors alike will be closely monitoring these developments.
