Bitcoin and cryptocurrencies prepare for May 3. Complications for the Fed

The first week of May will mark a major change in the market. Are Bitcoin and cryptocurrencies ready to meet the challenge?
Bitcoin continues to soar above $29,000 for a week that ends quietly, despite several open dossiers on the desk of the world's most powerful central banker. The central banker - though technically he is not - who has an important and seemingly obvious decision to make on May 3.
With the release of PCE data on Friday, April 28, the picture of clues about what could happen next week - and what will also affect bitcoin and cryptocurrencies - widens.
In addition, there are other issues that may not give a quiet weekend to the gathering of men and women who govern interest rates in the U.S. and - in a sense - around the world. What's in store for the coming week, and what data should we be looking at to understand what will happen in the cryptocurrency market?

First Republic, inflation and rates: a busy week for bitcoin and cryptocurrencies

This will be a busy week for both bitcoin and the cryptocurrency world. In the U.S., attention will be focused on several pressing issues that have plagued both Jerome Powell and the financial markets for some time.

Higher-than-expected PCE: what it is and what it means

It is one of many price indices that shows increases in personal and household consumption prices. It is a good indicator of price movements and is usually considered a factor in monetary policy decisions.
The data that came in today was slightly above expectations and suggests inflation is hard to beat, even though there have been several rate hikes in previous months.
Logically, this should push the Fed to raise rates by 25 basis points, a hypothesis that seemed a foregone conclusion yesterday and has become almost a certainty for markets today. Market expectations, which were already heavily in favor of a 25 basis point rate hike, have shifted even more toward that possibility.
If that happens, we don't expect any major shocks to the bitcoin price.

A few more cryptocurrency news that could affect markets

A lot is happening, albeit under the radar. Bitcoins on exchanges are rising, albeit modestly. Spot volumes have been interesting during the week, but futures market volumes are still lacking. Looking at it from this angle, it seems like the week, this one closes to charge into next week's fireworks. Let's see if this pattern repeats itself again.
Ethereum is gaining traction, although counting the $ETH available in the markets is always or almost always a poor account for predicting price movement. However, the ecosystem, and it is undeniable, is in great shape. Betting capital is coming back, a sign that there are few investors willing to flee after the upheaval caused by the Kraken case.
The rest of the market is finding its own way after a week-long roller coaster ride. Bitcoin's dominance suggests that $BTC has little room for further growth relative to the rest of the sector. But even here we are dealing with a rather weak indicator that is almost never used to reasonably assess future market movements.