You need to have a strong stomach to invest in crypto. If you are used to shares, gold or forex, a drop of 6% means the end of the world. On the crypto market? Just a Wednesday.
The total value of the crypto market, so all coins together, has decreased by almost 6% today.
Interest rates in the United States determine the market
Today there is something important planned on the other side of the ocean. A two-day meeting of the Federal Open Market Committee (FOMC) will reach its conclusion today.
Jerome Powell, the chairman of the US central bank, announced today what will happen to interest rates. Will it be reduced, increased or maintained? The prices betray the position of the market: most traders and investors expect that interest rates will not be lowered in any case.
Job market indicator for interest rates
Before the Federal Open Market Committee decides on interest rates, attention is first paid to the American labor market. Economists predict that job growth will have slowed slightly in April. Only 179,000 jobs were added, which is slightly lower than the 184,000 in March.
The number of vacancies, on the other hand, is expected to decrease, from 8.756 million to 8.680 million. A larger drop in job openings and a smaller increase in employment could lead to speculation that the Federal Reserve will cut interest rates in September.
Lower interest rates mean cheaper money and that is something that benefits every investor.
Dutchman predicts Bitcoin price decline
By the way, Dutch analyst Michael van der Poppe already predicted today’s decline.
Van de Poppe expected a dip in the price of Bitcoin. Possibly as high as $55,000 – $58,000 before the market can recover. We haven’t gotten that far yet, the price is still trading above 59,000 USD.
He https://twitter.com/CryptoMichNL/status/1785364388330824109 yesterday: ‘Monthly close approaching for Bitcoin and FOMC day tomorrow. I think we will see that move below $60K and possibly flow to $55-58K from where we find the bottom and turn back up. From there: May’s Ethereum ETF hype will gain momentum.”
