3 Things That Could Rattle Crypto Markets This Week: Key Events to Watch
After a brief period of optimism last week, crypto markets are once again on edge as several key economic and geopolitical events unfold. With macro uncertainty growing, here are 3 things that could rattle crypto markets this week.
1. Federal Reserve Interest Rate Decision – May 7
The most anticipated event this week is the U.S. Federal Reserve’s interest rate decision, scheduled for Wednesday, May 7. While markets are pricing in a 96% probability that rates will remain unchanged at 4.25% to 4.5%, traders are bracing for Fed Chair Jerome Powell’s commentary. Analysts from Bloomberg expect Powell to push back against expectations of rate cuts and reaffirm the Fed’s focus on price stability. Any hawkish tone could dampen risk appetite and weigh on crypto prices.
2. Slowing U.S. Economic Indicators
Recent data has raised concerns about the health of the U.S. economy, which could influence market sentiment. The surprise Q1 GDP contraction spooked investors last week, as businesses front-loaded imports ahead of potential new tariffs. Consumer sentiment is also sliding, now at levels not seen since the pandemic. This week, investors will be closely watching:
- ISM Services PMI and S&P Global Services PMI (Monday) for signs of economic strength or weakness.
- Consumer Credit Change report (Wednesday) for insight into household borrowing trends.
Weak readings across these indicators could intensify fears of a slowdown, pushing crypto markets lower.
3. U.S.-China Tensions and Big Tech Earnings
Geopolitical risks are back in focus as President Trump ramps up criticism of China, accusing it of “ripping us off.” With no plans to meet President Xi this week and conflicting narratives from both sides, trade tensions may escalate again. Markets dislike uncertainty—especially when it involves the world’s two largest economies.
In addition, earnings reports from major tech giants—Microsoft, Meta, Apple, and Amazon—are due this week. These companies, known as part of the “Magnificent 7,” heavily influence both equity and crypto sentiment. Weak results or cautious forward guidance could trigger broader market declines that spill over into crypto.
Crypto Market Snapshot
Despite a calm weekend, crypto markets started Monday in the red, with total capitalization dipping by 3.3% to just above $3 trillion. Bitcoin dropped below $94,000, its lowest level this month, while Ethereum slipped under $1,800. Altcoins followed suit with deeper declines.
With macro risks mounting, these 3 key events could rattle crypto markets this week, making it a critical period for traders and investors alike to watch.
