Week Ahead: Crypto market outlook could set to change after stale weekend

Crypto markets are likely to see a spike in volatility this week after a silent weekend.
The failed attempts from bulls and bears suggest that BTC could continue to move sideways.
The US CPI could induce a short-lived volatility spike if the Fed's decision veers off the expected course.

Akash Girimath FXStreet

Not many interesting developments occurred over the weekend, but this week could see a spike in volatility. Why? Despite the sell signals on Bitcoin’s weekly chart, the bears have failed to knock the price lower. This failed attempt at a correction could become costly for short sellers in the near future.

Also read: Bitcoin Weekly Forecast: Short-term holders add 1.12 million BTC, what does this mean?

BTC/USDT 1-week chart

Macroeconomics’ influence on crypto wanes

Macroeconomic events had a major impact on the crypto markets in 2021 and 2022, and since 2023, this effect has waned. A major event like the US Consumer Price Index (CPI) coming up on Wednesday at 12:30 GMT would have had short-term implications on Bitcoin price, but considering the recent activity, crypto markets will likely remain unaffected.

Also read: US Dollar strength could be one of the reasons why Bitcoin could crash more

Regardless, the CME Group FedWatch Tool shows that there is a 95.4% odds that the interest rates will remain unchanged at the current 5.25% to 5.50% range in the Fed’s May meeting.