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bitcoin bitcoin/”>plummeted more than 8% in the last 24 hours to trade at $56,900.42 at 4:55 am EST, as crypto markets had their worst month since the implosion of the FTX crypto exchange in November 2022.
The drop ended a seven-month winning streak for the crypto markets and has sent the crypto/fear-and-greed-index/”>crypto Fear and Greed Index plummeting from a reading of “extreme greed” and optimism last month to “neutral” today.
The broader market is flashing red after a sudden cryptocurrency crash that shaved more than 7% off the market capitalization of the cryptocurrency industry. The downturn came on the same day that Binance founder Changpeng Zhao, known as CZ, was sentenced to four months in jail after pleading guilty to anti-money laundering violations.
It also came after a disappointing release of ethereum and bitcoin ETFs (exchange-traded funds) in Hong Kong. Total trading volume on opening day was just $12.4 million, compared to earlier estimates of $140 million.
<img decoding="async" alt="Top crypto Losers Today: Solana, XRP and Dogecoin Trade in the Red, bitcoin and ethereum Drop More Than 1%” src=”https://technicalterrence.com/wp-content/uploads/2024/05/Bitcoin-Sinks-8-Below-60000-as-Crypto-Markets-Have-Worst.jpg”/><img decoding="async" src="https://technicalterrence.com/wp-content/uploads/2024/05/Bitcoin-Sinks-8-Below-60000-as-Crypto-Markets-Have-Worst.jpg" alt="Top crypto Losers Today: Solana, XRP and Dogecoin Trade in the Red, bitcoin and ethereum Drop More Than 1%”/>
Smaller Cryptocurrencies Plunge as Fed Rate Cut Hopes Fade
Altcoin leader ethereum (eth) saw its price fall more than 6%, while Binance Coin (BNB) and Solana (SOL) each recorded 24-hour losses of more than 7%.
Traditional markets also suffered after a series of US economic reports on April 30 showed signs of slowing growth and increasing price pressures. As a result, hopes that the US Federal Reserve will begin cutting interest rates diminished.
<blockquote class="twitter-tweet” data-width=”550″ data-dnt=”true” wp_automatic_readability=”6.8653846153846″>
(AUDIO) Wednesday Pre-Call: Market Shakes at Prospect of Single Fed Rate Cut in 2024. pic.twitter.com/xLcyDIAm5m
– LMAX Group (@LMAX) twitter.com/LMAX/status/1785556147862138971?ref_src=twsrc%5Etfw”>May 1, 2024
This is weighing heavily on the digital asset sector, Joel Kruger, market strategist at LMAX Group, said in an April 30 report. “We continue to see evidence that the Federal Reserve needs to tilt back toward a higher policy outlook for the longer future, despite investor calls for further accommodation.”
bitcoin remains at risk of further declines
K33 is bearish towards the market leader and the rest of the crypto space. After months of market optimism, sentiment has now “turned truly cautious,” he said in a post on x.
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After months of optimism and rising prices, market sentiment has now turned truly cautious.
Will “sell in May and stay away” be a good strategy again?https://t.co/rSrLCERVqM
— K33 Research (@K33Research) twitter.com/K33Research/status/1785301978760806566?ref_src=twsrc%5Etfw”>April 30, 2024
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