Crypto Markets Prepare for Key Events Impacting Liquidity and Valuations
The first full crypto trading week of May features significant events that may impact liquidity, sentiment, and valuations in the digital asset space.
#1 Bitcoin and Crypto Market Awaits FOMC Decision (May 8)
- The Federal Open Market Committee is expected to maintain the target range at 5.25 – 5.50%.
- Chair Jerome Powell's post-decision remarks will be analyzed for hints of potential rate cuts in June or July.
- Governor Chris Waller indicates that substantial real data changes are not anticipated until after July.
- Public calls for immediate easing from President Trump and Treasury Secretary Bessent have not influenced the Committee thus far.
#2 Ethereum Pectra Upgrade (May 7)
- Ethereum activates the Pectra upgrade, incorporating eleven EIPs to enhance network functionality.
- EIP-7702 allows transaction batching and gas sponsorship while retaining existing addresses.
- EIP-7251 increases maximum validator balance to 2,048 ETH, benefiting reward compounding.
- EIP-7691 doubles blob throughput to six blobs per block, enhancing data processing.
- Improvements in deposit-queue latency from nine hours to thirteen minutes are achieved under EIP-6110.
#3 Sonic Summit (May 6-8)
- Sonic Summit 2025 in Vienna gathers builders, capital allocators, and researchers for discussions on interoperability and zero-knowledge tooling.
- Keynotes feature industry leaders, emphasizing technical developments over marketing.
#4 Hyperliquid Fee Overhaul (May 5)
- Hyperliquid separates spot and perpetual futures fee schedules and adjusts volume calculations for traders.
- Stakers can earn up to a 40% fee rebate by holding 50 million HYPE.
- The structure aims to attract liquidity without compromising market activity.
#5 Coinbase Earnings Call (May 8)
- Coinbase Global will report Q1 results with adjusted earnings per share forecasts between $2.09 and $2.15.
- Analysts will focus on legal provisions, international expansion, and revenue sources amid ongoing litigation.
- Management guidance on operating margin could influence market reactions post-report.
At press time, Bitcoin traded at $94,777.
