Why is the Bitcoin price rally inevitable over the next 45 days?

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Crypto Market News: Ahead of the Federal Open Market Committee (FOMC) meeting on May 2-3, 2023, the S&P 500 Index ended the week on a high with a nearly 1% 5-day jump. The US Federal Reserve meeting will be followed by data on jobless claims and the unemployment rate between May 4 and May 5, 2023. While the market expects a 25 basis point rise for the latest in a series of target rate hikes, any sign of a dovish outlook The June 2023 Fed meeting could support markets. However, there could be a downside trap around the Fed’s rate decision as the new target rate is expected to be 5-5.25% against central banks’ target of keeping inflation at 2. %.

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Additionally, traders expect slowing inflation and a stable labor market to trigger a pause in Fed rate hikes when the central bank meets again on June 14, 2023 for the meeting. of the FOMC. If the rate hike pause takes effect, the crypto market could potentially take a bullish stance in anticipation of what could be a Fed pivot, meaning rate cuts in upcoming meetings.

Bitcoin bullish in the next 45 days?

With the market expecting a pause in rate hikes at the June 14 meeting, any indication of a dovish stance from Fed Chairman Jerome Powell at the post-FOMC press conference could be key to setting the market mood for the next 45 days. However, further fluctuations in the consumer price index (CPI) and employment data could reduce the prospects of a pause in rate hikes in the near future. Earlier, CoinGape reported that Bitcoin price may see resistance at the $31,000 level, from the current price range of $29,243.

According to CME tool FedWatch, no less than 84% of respondents expect the US Fed to take a 25 basis point hike decision at the May 3 meeting. Therefore, a rise in rates on the expected lines could likely trigger a decline in the price of Bitcoin, before taking an upward trajectory, according to Powells’ comments. Already, Goldman Sachs economists have said they do not expect the US Federal Reserve to raise interest rates in June 2023. Therefore, the next 45 days could be broadly bullish for the price of Bitcoin. , although many predict that BTC will hit $100,000.

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