The cryptocurrency market closed the week in the red following signs from the US that inflation is not stopping. Investors follow critical developments such as the FED’s interest rate decision and important altcoin lock openings.
This week, the FED decision is eagerly awaited
The interest rate decision that the FED will announce on May 1 will closely affect the cryptocurrency market, as well as all markets. The decision is expected to be announced around 21.00-22.00. As the expectation of interest rate increases increases, the tendency to escape from risky assets may also lead to sales in the cryptocurrency market. Interest rate increases may increase borrowing costs and push investors away from risky investments. This may cause declines in cryptocurrency prices.
Another important development that will mark the week will be the large number of altcoin lock openings. These lock openings are likely to increase supply and cause declines in prices. Unlockings refer to the release of tokens that were previously locked to be sold to investors. This may increase the supply of tokens, causing declines in prices.
Locks are being opened on those altcoin projects
Below is a calendar of major token unlocks taking place between April 29 and May 5:
- April 29: AltLayer (ALT), WOO Network (WOO), Manta Network (MANTA), Atlas Navi (NAVI), Sei (SEI), Portal (PORTAL)
- April 30: Optimism (OP), Echelon Prime (PRIME), Celo (CELO), Illuvium (ILV), API3 (API3), Sui (SUI)
- May 1: SKALE (SKL), Vaiot (VAI), Solend (SLND), Rainbow Token (RBW), Hooked Protocol (HOOK)
- May 2: dYdX (DYDX), Orbler (ORBR), ZetaChain (ZETA), Acala (ACA), Nym (NYM)
- May 3: Biconomy (BICO), Ethena Labs (ENA), Decentral Games (DG)
- May 4: LayerAI (LAI), Rally (RLY)
- May 5: Mines of Dalarnia (DAR), SEDA Protocol (FLX), Galxe (GAL), Work X (WORK)
Investors should be careful
Altcoin unlocking means releasing tokens that have previously been locked to be sold to investors on a specific date. This may increase the supply of tokens, causing declines in prices. Lock openings are often done for a few different reasons:
- Getting funding: Projects can raise funds through unlocks and get the money they need to develop their project.
- Incentivizing investors: Projects can use key expansions to reward early investors and attract more investors.
- Building the community: Projects can encourage community involvement through keynotes and enable them to contribute to the management of the project.
As a result, critical developments such as the FED interest rate decision and large altcoin lock openings may cause significant fluctuations in the cryptocurrency market. It is important for investors to follow these developments closely and manage their risks. Cryptocurrency investments are quite risky and investors should take the risk of losing all their money.
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