As April comes to a close, the markets are bracing for a multitude of 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, alongside earnings reports from major companies such as Visa, Mastercard, Robinhood, and prominent tech firms. These developments have the potential to either bolster or disrupt the current market sentiment. According to Markus Levin, Co-founder of XYO, bitcoin is entering the week with substantial momentum around the $78,000 mark.
However, the anticipated decision by the Fed to maintain interest rates, coupled with persistent inflation, may reinforce a hawkish tone, potentially causing bitcoin to retreat to the $72,000-$74,000 range in the short term. Levin also emphasized the significance of tech giants' earnings reports, which could influence the market trajectory due to their considerable impact on equity markets. Furthermore, the progress of US-Iran talks is likely to shape market sentiment through fluctuations in oil prices and dollar movements.