TL;DR
- This week, key economic data and technical updates will be released that could shift the dynamics of the crypto market and Bitcoin’s price.
- The Federal Reserve will set interest rates on May 7, with forecasts pointing to a hold, though political pressures leave room for surprises.
- Ethereum will activate its Pectra upgrade, which improves wallet management and multiplies the staking limit per node, potentially triggering volatility.
This week will be decisive for the crypto market, as a series of economic reports and technical updates could alter its behavior.
Trump Called for an Interest Rate Cut
The United States Federal Reserve will announce its decision on interest rates on May 7. Analysts expect them to remain between 4.25% and 4.5%, although political pressures could alter that scenario. Donald Trump publicly called for a rate cut, citing a solid labor market and a slowdown in prices. Beyond the decision itself, investors should closely follow Jerome Powell’s statements.
On the same day, Ethereum will activate its Pectra upgrade. This update includes eleven improvements aimed at simplifying wallet usage and access recovery processes. Additionally, it will raise the staking limit per node from 32 ETH to 2048 ETH — a change that could transform network participation dynamics and generate significant volatility in ETH’s price.
On May 8, the initial jobless claims report will be released in the United States. This indicator works as a thermometer for the labor situation and, consequently, for the overall health of the economy. An increase in the figures would signal economic cooling, while a drop would support the narrative of labor market strength in the country.
Bitcoin Pulls Back and Awaits New Reports
Attention will also turn to the upcoming inflation reports. The Consumer Price Index (CPI) will be released on May 13, followed by the Producer Price Index (PPI) on May 15. In March, the CPI showed a slight 0.1% decrease, while Core CPI rose by the same amount. After that report, Bitcoin briefly surpassed $82,000. The latest PPI figure, released on April 11, showed a 0.4% monthly drop, which drove a 4% increase in Bitcoin’s price.
In recent trading sessions, Bitcoin has given up ground, moving lower and settling at around $94,000 per unit. If selling pressure continues, it could fall to $92,000.
