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Crypto Prices May 01: FOMC Fears Trigger Massive Sell-Off

Key Takeaways
  • Bitcoin is currently facing difficulty maintaining its value at $60,000, while Ethereum remains around $3,000
  • The cryptocurrency market has seen a 5.10% decrease, resulting in a total market capitalization of $2.34 trillion
01-May-2024 By: Lokesh Gupta
Crypto Prices May 01

Crypto dips 5.10%, totaling $2.34 trillion in capitalization

  • Bitcoin price fell to $60,000 ahead of the FOMC meeting amid fears of prolonged higher interest rates by the US Fed, sparking market jitters.

  • Former Binance CEO Changpeng Zhao sentenced to four months in prison for pleading guilty to violating US money-laundering laws.

Major Events To Watch

forex factory

Crypto Fear and Greed Index:

fear and greed index

The Fear and Greed Index has dropped by 13 points to reach 54 out of 100, indicating widespread panic selling in the cryptocurrency market.

Latest Market Update: 

  • Despite the recent launch of a Hong Kong ETF, the price of Bitcoin (BTC) plummeted to the $60,000 level.

  • Altcoins including Bitcoin SV ($BSV), Ethereum Classic ($ETC), Solana ($SOL), Ethena ($ENA), and Stacks ($STX) experienced panic selling.

  • In the last 24 hours, the Cosmos ($ATOM) token has shown significant growth, rising by over 5.29% during this period.

  • Conversely, Areware ($AR) faced the most substantial downturn, dropping by more than 16.74% over the past 24 hours.

  • The total volume of the crypto market in the past 24 hours surged by 32.32% to reach $90.44 billion.

  • DeFi volume stands at $6.94B, comprising 7.67% of the total crypto market's 24-hour volume.

  • Stablecoin volume reaches $84.94B, representing 93.92% of the total crypto market's 24-hour volume.

  • Bitcoin dominance is at 53.32%, experiencing a decrease of 0.17% throughout the day.

Major Worldwide News Update:

  • Before the FOMC interest rate decision, focus turns to the US labor market. Economists anticipate April's ADP to rise by 179k, slightly lower than March's 184k. However, JOLTs Job Openings are expected to decrease from 8.756M to 8.680M. A larger job openings decline and smaller employment increase could fuel bets on a September Fed rate cut, impacting wage growth and consumer spending.

  • Today, the Federal Open Market Committee (FOMC) will announce America's monetary policy decision at 2 p.m. ET. Fed Chair Jerome Powell will reveal whether interest rates will be cut, raised, or maintained. Powell's subsequent press conference will be closely watched by global investors for insights into future monetary policy directions. The FOMC meeting spans April 30 to May 1.

  • Binance founder CZ, aka Changpeng Zhao, received a 4-month prison sentence, expressing gratitude for support on Twitter. He plans to focus on education post-release, affirming continued cryptocurrency investment. Despite DOJ's proposed 3-year term, Judge Richard Jones opted for leniency, citing lack of evidence of awareness of unlawful activities. The decision sparked debates on justice in the crypto industry.

  • Fox's Eleanor Terrett reports optimism from issuers of leveraged ETH futures ETFs regarding SEC approval. Allegations of Ethereum as a security contrast SEC's past stance. Volatility Shares' 2x Ether Strategy ETF ($ETHU) plans June launch pending SEC approval. Gensler's view conflicts with SEC's previous classification. Consensys lawsuit challenges SEC's stance.

  • Litecoin's Charlie Lee anticipates a spot LTC ETF approval by the SEC, citing similarities with Bitcoin. Lee expects initial demand disparities but foresees long-term optimism. Ethereum's PoS status complicates ETF approval, facing SEC delays and potential denials. Lee believes Ethereum's broader utility could drive higher demand if approved.

  • Australia's ASX may approve spot Bitcoin ETFs from VanEck Australia and BetaShares by 2024 end, following U.S. and Hong Kong trends. Confidence from $53B AUM in U.S. ETFs drives Australian launches. Monochrome predicts $3-4B inflows in 3 years, citing demand from fund managers, SMSF investors, and retail.

  • Lazarus Group, allegedly linked to North Korea, laundered $200M in stolen Bitcoin using sophisticated methods like coin mixers. Their use of platforms like Tornado Cash and Railgun raises concerns about blockchain security. North Korean hackers stole over $600M in crypto in 2023, highlighting their significant impact on the industry.

COIN GABBAR Views: Is Bitcoin Price On The Verge Of A Big Drop As Ethereum (ETH) And Altcoins Nosedive? How bad is it as Bitcoin price red alert as 7-month green streak ends? Is the Crypto Bull Rally Over with Bitcoin Price Dips? To blame for BTC’s plunge below $60,000, is ETF slowdown? Will Bulls able to hold $60,000? How Powell Speech Could Impact Bitcoin Price? What to Expect From Fed FOMC? To get latest news Stay tuned us at coingabbar

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Also Read: Crypto Prices Today 30 April: BTC Crash After Hong Kong ETFs

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