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Crypto Prices May 2: Crypto Rebound as Fed Hits Pause Button

Key Takeaways
  • Bitcoin bounces back above $57,000 after a dip, while Ethereum holds above $2,900
  • The cryptocurrency market experiences a 2.80% decline, leading to a total market capitalization of $2.27 trillion
02-May-2024 By: Lokesh Gupta
Crypto Prices May 2:

Cryptocurrency market cap hits $2.27 trillion,dropping 2.80%

  • Bitcoin ETFs experienced significant discounts on their underlying assets, with leading ones such as BlackRock's IBIT seeing discounts of nearly 1.8%.

  • Cryptocurrencies had mixed performance Wednesday as the Federal Reserve eased concerns about potential rate hikes.

Major Events To Watch

forex factory

Crypto Fear and Greed Index:

fear and greed index

The Fear and Greed Index has plummeted by 11 points, dipping into the fear zone at 43 out of 100. This suggests a prevalent trend of panic selling across the cryptocurrency market.

Latest Market Update: 

  • #Bitcoin ($BTC), the oldest and most valued cryptocurrency, fell below $58,000 on Thursday, erasing recent gains.

  • Other popular altcoins like #Ethereum ($ETH), #Dogecoin ($DOGE), #Ripple ($XRP), #Solana ($SOL), and #Litecoin ($LTC) also saw losses.

  • #Axelar ($AXL) token stood out as the top gainer, surging over 11% in the past 24 hours.

  • #Arweave ($AR) token, yesterday's biggest gainer, experienced the largest loss, dropping over 5% in 24 hours.

  • Crypto market volume surges by 17.39% in the past day to $106.2B.

  • DeFi volume stands at $7.53B, constituting 7.09% of the total crypto market 24-hour volume.

  • Stablecoin volume reaches $98.41B, comprising 92.66% of the total crypto market 24-hour volume.

  • Bitcoin dominance is at 52.42%, experiencing a decrease of 0.92% in a day.

Major Worldwide News Update:

  • Bitcoin traded around $57,000 following the US Federal Reserve's decision to maintain its benchmark rate between 5.25 and 5.50. Chair Powell cited persistent high inflation for the hold. Bitcoin's decline since February is seen as influenced by broader economic and geopolitical concerns, contributing to market correction and pullback.

  • US spot Bitcoin ETFs saw outflows exceeding $500 million post-FOMC meeting, with BlackRock's IBIT experiencing its first outflow of $37 million. Fidelity’s FBTC led with $191 million outflows, surpassing Grayscale’s GBTC. All nine ETFs faced outflows, witnessing significant discounts, raising concerns amid market volatility.

  • Zeus Network plans to launch the Zeus Program Library (ZPL) in Q3 2024, aiming to seamlessly connect Solana and Bitcoin ecosystems. ZPL enables Solana support in decentralized applications, introducing fungible and non-fungible ZPL-Assets. Apollo bridging protocol facilitates exchanging Bitcoin for ZPL-wrapped tokens, enhancing utility across Solana platforms. Industry support signals potential impact.

  • Former SEC crypto enforcer Ladan Stewart clarifies agency stance: no anti-crypto agenda, prioritizing investor protection via clear disclosures and compliance. Regulatory actions aim to foster market growth, not stifle innovation. Stewart, now at White & Case LLP, advocates balanced enforcement targeting issuers and exchanges for holistic industry impact.

  • South Korea's FSS addresses rising crypto phishing attacks by collaborating with major exchanges. Plans include creating educational materials and publishing case studies to enhance public awareness. The FSS aims to protect citizens, especially vulnerable groups, from scams. They'll distribute resources through various channels and urge reporting of fraud incidents.

  • In Q1 2024, Tether Holdings announces a remarkable profit of $4.52 billion, driven by gains from Bitcoin, gold, and operational successes. CEO Paolo Ardoino underscores the company's commitment to transparency and prudent risk management. Tether's net equity climbs to $11.37 billion, with strategic investments surpassing $5 billion. Despite USDC overtaking USDT in transaction volume, Tether continues to maintain its dominant position.

  • MicroStrategy, top corporate Bitcoin holder, unveils MicroStrategy Orange, a decentralized identity solution on Bitcoin network using Ordinal-based inscriptions. Open-source, not reliant on sidechains, capable of processing 10,000 DIDs in one transaction. Offers pseudonymity, digital signatures, and aims to extend to messaging, social media, and e-commerce platforms.

COIN GABBAR Views: Could the creation of the third monthly bearish engulfing candlestick in Bitcoin's history have significant implications for BTC? With the price settling below $60K, should we perceive this as a critical bearish signal? Is the pause in the BTC bull run following the crash to $57K indicative of a healthy correction? To get latest news Stay tuned us at coingabbar

Disclaimer: Coingabbar's guidance and chart analysis on cryptocurrencies, NFTs, or any other decentralized investments is for informational purposes only. None of it is financial advice. Users are strongly advised to conduct their research, exercise judgment, and be aware of the inherent risks associated with any financial instruments. Coingabbar is not liable for any financial losses. Cryptocurrency and NFT markets could be highly volatile; users should consult financial professionals and assess their risk tolerance before investing.

Also Read: Crypto Prices Today 1 May: Cryptos Drop Ahead of Fed Verdict

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