On Wednesday morning, May 1, the quotes of the first cryptocurrency fell below $60,000.
At the time of writing, the rate has dropped to $59,700. Over the past day, the asset has collapsed by 5.8%, according to CoinGecko.
The BTC/USDT hourly chart of the Binance exchange. Data: TradingView.The deterioration in sentiment is also typical for other cryptocurrencies with high capitalization. The leaders of the fall in the top 10 are DOGE (-8.8%) and SOL (-8.8%). XRP demonstrates a lower rate of decline (-2.3%). Ethereum fell by 6.4%.
Data: CoinGecko.The total capitalization of the cryptocurrency market is $2.32 trillion. The BTC dominance index is 50.7%.
The deterioration in sentiment in the cryptocurrency market is consistent with a weakening of risk appetite in general in global markets ahead of the Fed meeting.
Today at 21:00 (Kiev/Moscow time), the Federal Reserve will make a decision on the level of the base rate, at 21:30 — the head of the American Central Bank Jerome Powell will speak.
The S&P 500 index fell by the highest 1.6% since January. The yield of two-year US government bonds sensitive to the Fed's policy returned to the November peak of 5%.
The day before, data on the dynamics of labor costs were released in the United States. The corresponding index increased by 1.2% in the first quarter against the forecast of 1% and an increase of 0.9% in October–December.
Macro statistics overshadowed expectations before the Fed meeting, shifting expectations of the first rate cut to November. According to futures, the probability of policy easing in September dropped from 57.5% to 45.5%. For comparison, a month ago, the market was 89.8% confident in this scenario.
Data: CME."Stocks, bonds, and the dollar are all ahead of the likelihood that Powell will frown on the interest rate decision. This morning's data justifies the increasingly hawkish position of the committee," commented Jose Torres of Interactive Brokers.
MicroStrategy shares stood out against the general background — their capitalization fell by 17.6%. Coinbase securities fell by 6.5%, Marathon Digital and Riot Platforms — by 10.9% and 8.8%, respectively.
According to Santiment, the released data in the United States caused a surge in discussions around the hashtag #buythedip and mentions of BTC. According to analysts, such an increase in sentiment indicates a resumption of polarization among traders. Some advocate the possibility of buying, while others remain cautious.
🤑😨 #Bitcoin fell to $60K for the first time since April 18th as #inflation fears in the US are creeping in once again. We are seeing mentions of $BTC and #buythedip calls spiking, which is signaling polarization between traders is back on the menu. https://t.co/oNOUuPkDvE pic.twitter.com/4uaWGDF0iU
— Santiment (@santimentfeed) April 30, 2024Recall that Glassnode came to the conclusion that bitcoin is currently forming a bottom in the range of $60,000-66,700. A sustained break below could trigger a cascade of panic, triggering a desire to establish a new equilibrium, they warned.
Earlier in the ForkLog comment, experts explained the post-trading dynamics and predicted further developments.