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Bitcoin on the Brink: Critical Crypto Catalysts This Week

Bitcoin on the Brink: Critical Crypto Catalysts This Week

Author:
Coingape
Published:
2025-05-05 14:47:52
12
1

Crypto markets brace for volatility as macro triggers loom—will BTC bulls hold the line or get slaughtered by bears? Here’s what moves the needle.

Fed whispers & ETF flows: Institutional appetite (or lack thereof) could dictate short-term price action. Watch for sudden liquidity swings.

Altcoin reckoning: Ethereum upgrade delays and Solana network congestion threaten to spill red across mid-caps. Trade carefully.

Regulatory grenades: Another week, another SEC commissioner dropping ’hints’ like a bad poker player. Markets hate uncertainty—surprise.

Bottom line: This isn’t your 2021 meme-driven casino anymore. Real money’s at play now—which means sharper knives when sentiment flips.

This week is packed with key events that could have an  impact on the crypto sector. Don’t miss out—here’s what you need to know.

All eyes are on the Fed’s interest rate decision, which would affect the market sentiment across the financial and crypto sector. 

The Fed is expected to keep the interest rates unchanged at 4.25- 4.5%. While inflation could push the Fed to keep rates steady, President Trump’s push for a rate cut could influence the decision. Trump, in a recent post, pointed to strong jobs data and falling prices as reasons for a rate cut. He also credited his tariff policy for bringing in billions.

However, there’s something more important than the rate decision itself that investors and analysts will be watching closely: What the Fed Chair has to say. Specifically, any comments on U.S. tariff policies are highly expected from Powell.

In its last meeting, it noted steady economic growth, low unemployment, and a strong job market. However, inflation remained high, and the uncertainty had also increased. Bitcoin dropped slightly after the last Fed rate update, falling from over $84,000 to around $83,500.

The Fed has five meetings remaining on its 2025 calendar. On the same day, Ethereum’s Pectra upgrade is all set to go live, which will impact Ether’s price. It includes 11 improvements, mainly focused on making wallet use and recovery easier, and raising the maximum stake for one node from 32 ETH to 2048 ETH. 

The US initial jobless claims will provide fresh insights into the labor and market health. The report shows how the US job market is performing. Fewer jobless claims would mean that the economy is strong, while more claims would indicate the economy is weak.

The US CPI will come in on May 13, and on May 15, the PPI report is scheduled. Both reports will be closely watched as key inflation signals by both traders and policymakers. 

The Consumer Price Index (CPI) dropped by 0.1% in March, while Core CPI, which excludes food and energy, ROSE just 0.1%. Bitcoin had climbed slightly above $82,000 over the news. 

The recent PPI report on April 11, 2025, showed a 0.4% month-over-month decline. Bitcoin rose 4%, reaching $82,500 following the data.

Bitcoin dropped below $94,000 ahead of the Fed decision. It has dropped 3% over the weekend, from $96,926 to $94,162, and could drop to $92K next.

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