According to @KobeissiLetter, market expectations for May's Core CPI have increased to 2.9%, as reported by @Kalshi. This signals the first Core CPI inflation uptick since January 2025, just before the critical June Fed meeting. Traders are closely monitoring this economic data release, as higher-than-expected inflation could influence Federal Reserve rate decisions and result in increased crypto market volatility. With the CPI report acting as a key indicator for risk assets, crypto traders should be prepared for potential price swings following the official data release. Source: @KobeissiLetter, @Kalshi.

According to Mihir (@RhythmicAnalyst), market consensus and expert forecasts indicate no interest rate cut is expected from the Federal Reserve today, with most analysts pricing in a hold decision. Mihir notes a personal preference for a 0.25% rate cut, but this is not reflected in current market expectations (source: Twitter, May 7, 2025). For crypto traders, a rate hold may maintain current levels of dollar strength and liquidity, potentially limiting upside momentum for Bitcoin and altcoins in the short term. Traders should watch for any unexpected dovish signals from the Fed, as an unexpected cut could trigger a rapid risk-on rally in major cryptocurrencies.

According to Michaël van de Poppe (@CryptoMichNL), the current rally in gold reflects a persistent risk-off mentality among traders as the FED meeting approaches on Wednesday. He highlights that the upward trend in Services PMI is a positive macroeconomic indicator. For crypto traders, the ongoing build-up in Bitcoin suggests accumulation, and van de Poppe anticipates a potential upward move in Ethereum prices following the FED's decision (Source: Twitter/@CryptoMichNL, May 5, 2025). Traders should monitor volatility around the FED meeting, as both traditional and crypto markets may react sharply to policy updates.

According to Michaël van de Poppe, Bitcoin ($BTC) experienced a significant daily candle, indicating potential upward momentum. This trajectory, however, is contingent upon the outcome of the upcoming FED meeting. Van de Poppe suggests that while a rate cut is not anticipated by the markets, such a move could notably boost altcoin strength. This analysis highlights the importance of the FED's monetary policy decisions on cryptocurrency trading dynamics.

According to CryptoMichNL, Bitcoin is currently consolidating, and although it hasn't reached the desired highs, a price range of $64-65K is considered possible. If Bitcoin reaches this range, it presents an ultimate buy-the-dip opportunity. This is seen as the final correction before a potential run towards a new all-time high around the time of the upcoming elections or the next Federal Reserve meeting.