As April comes to a close, the markets are bracing for a busy week filled with significant macroeconomic events. The monetary policy decisions of four major central banks - the Bank of Japan, the US Federal Reserve, the European Central Bank, and the Bank of England - are expected to be announced this week. Additionally, a slew of key US data releases, including first-quarter GDP and March PCE inflation, are scheduled, along with earnings reports from major companies such as Visa, Mastercard, Robinhood, and prominent tech firms. These developments have the potential to either strengthen or disrupt the current market tone.
According to Markus Levin, co-founder of XYO, bitcoin is entering the week with substantial momentum around the $78,000 level. However, the persistence of inflation could lead to a hawkish tone from the Fed, potentially causing bitcoin to retreat to the $72,000-$74,000 range in the short term.
Levin also emphasized that the earnings reports of tech giants will be crucial in determining the market's trajectory, given their significant influence on equity markets. Furthermore, the progress of US-Iran talks will impact market sentiment through fluctuations in oil and dollar prices.