Bitcoin and altcoins tumble over renewed concerns of a worst-case economic scenario in the US. Bitcoin price dips below $62,500, extending weekend losses.

Top altcoins witness steeper declines, with corrections ranging from 4-10%. Looming Fed decision and weaker-than-expected US GDP data stoke stagflation fears.

Market Debates Bullish vs. Bearish Narratives

Recent market volatility reflects uncertainty surrounding the future direction of cryptocurrencies. Upward momentum stalls as investors grapple with the potential for stagflation, a combination of high inflation and stagnant economic growth.

This scenario could see the Federal Reserve maintain interest rates, hindering expectations for cuts that historically fueled crypto rallies.

Hong Kong ETF Launch Offers Glimmer of Hope

The upcoming launch of spot Bitcoin and Ether ETFs in Hong Kong next week is viewed as a potential catalyst for the market. This development could attract Asian institutional capital into the crypto space, boosting investor sentiment.

However, the exclusion of mainland Chinese investors from participating tempers some of the initial excitement.

Focus on Upcoming Events

Key economic data releases and the Federal Reserve’s interest rate decision on May 1st will heavily influence market sentiment. Consumer confidence, job data, and the Fed’s policy stance are crucial factors to watch in the coming week.

Ali Martines Highlights Bitcoin Whale Activity Dip

Crypto analyst Ali Martinez observes a significant decrease in Bitcoin whale activity since mid-March. This unusual lull sparks speculation about a potential price surge if whale transactions resume.

Whales, or individuals/entities holding substantial crypto holdings, can significantly influence market movements.

Rekt Capital Cautions of Potential Downturn

Amidst ongoing uncertainties, analyst Rekt Capital warns of a possible Bitcoin price correction within the next two weeks. This adds another layer of complexity to the current market situation.

Rekt Capital suggests Bitcoin might be undergoing a prolonged reaccumulation period following the recent halving event. This sideways consolidation phase is essential for building a foundation for the next major price increase. The analyst predicts this phase could last up to 150 days, potentially extending into late September or early October.