Crypto Market Today: What to Expect From FOMC & SEC’s Announces 4th Crypto Discussion
After witnessing a 10% surge in April, the cryptocurrency market took a sudden pullback on the first weekend of May. As a result, the total crypto market capitalization dropped from $2.97 trillion to $2.89 trillion.
Bitcoin’s recent attempt to recover weekend losses has failed, further highlighting the crypto market’s bearish sentiments. The upcoming FOMC meeting and SEC’s 4th crypto round table discussion add uncertainity to what comes next for BTC and the rest of the cryptocurrencies.
Upcoming FOMC Meet and SEC Discussions
The sudden weakness in the crypto market comes days before the upcoming Federal Open Market Committee meeting. The FOMC meeting will discuss a potential change in the Federal Target Rate.
However, as per the FedWatch tool, there is a 98.2% chance that the Federal rates will likely remain the same. The current Federal rates are 425 to 450 basis points. Notably, the same tool estimates a 33.66% chance of a 25 basis point rate cut in June 2025.
As the rates are expected to remain the same in May, the market remains a bit tense. Due to a strong correlation, the downfall in Bitcoin is likely to fuel a crash in altcoins.
However, the United States Securities and Exchange Commission’s Crypto Task Force has announced its agenda and panelists for an upcoming roundtable meeting. The meeting is scheduled for May 12, 2025, with the title, “Tokenization — Moving Assets Onchain: Where TradFi and DeFi Meet.”
The meeting will be led by Commissioner Hester M. Peirce, emphasizing the potential of tokenization to transform financial assets. The event will be open to the public between 1 pm and 5:30 pm in the SEC headquarters in Washington, D.C.
There will also be a live webcast of the highly anticipated roundtable meeting. This could lead to increased adoption at an administrative level, fueling the bullish sentiments.
Notably, the date for the roundtable conference of DeFi and the American Spirit has been rescheduled from June 6 to June 9. Accordingly, the registration has automatically carried forward to the new date.
Bitcoin Price Crash To Hit $90k?
At present, Bitcoin trades at a market price of $94,315, creating a Doji candle in the daily price chart. However, the prevailing bull run in Bitcoin in April has led to a positive crossover in the 50 and 100 EMA lines, while Bitcoin holds its market cap near $1.87 trillion.
The short-term pullback in Bitcoin from $97,000 to $94,000 highlights the underlying weakness. The weakness is further highlighted by DarkFost, a crypto on-chain analyst, spotting the slowdown in the Bitcoin network.
In a recent tweet, the analyst highlights the network activity index of Bitcoin, witnessing a significant drop since December 2024. This projects a significant drop in transaction activity and a steep decline in daily active users in the past few months.
Furthermore, the on-chain data suggests the declining demand for block space as the number of UTXOs dropped over the past few months. The declining trend in the Bitcoin network activity mimics a pattern seen during the bear markets, historically seen during the China ban in June 2021.
Despite the on-chain data reflecting a potential bear market, Strategy has made another significant Bitcoin purchase led by Michael Saylor. The company has acquired 1,895 BTC for $180 million with an average price of $95,167.
With the recent purchase, the Strategic Bitcoin Portfolio now holds 555,450 BTC worth nearly $38 billion. The average cost of a single Bitcoin in the portfolio rounds up to $68,550.
Altcoins To Take Nosedive Before FOMC Meet?
Currently, the total crypto market cap, excluding Bitcoin, stands at $1.02 trillion, witnessing a pullback of nearly 2.5% over the weekend. However, top altcoins have witnessed key developments that could help sustain the short-term uncertainty.
One such altcoin is the BNB token, currently trading at $595, with an intraday recovery of 1.52%. The BNB token recently lost its $600 support level. However, the financial institution VanEck has recently filed an S-1 form with the United States Securities and Exchange Commission to launch a BNB ETF.
Joining the roster of multiple crypto ETFs on hold in the U.S. market, the BNB ETF is a crucial registration statement for the Binance Coin ETF. Upon approval, the BNB holdings can be utilized for staking rewards or other forms of income.
Solana Developers Solve Key Bug But Bears Regain Control
A key development for Solana has come from its development team resolving a key bug to prevent SOL token minting risk. The Solana Foundation has addressed a critical vulnerability that could have allowed SOL attackers to mint and withdraw unauthorized tokens.
The Foundation has explained the critical flaw that allowed attackers to forge invalid proofs, affecting Solana’s privacy-focused Token-22 confidentiality tokens.
With the key milestone achieved by SOL, the Solana price momentarily reached $147. Currently, it trades at $144, holding its ground above the 50-day EMA. As Solana holds its uptrend in motion, the bull run is likely to reach the $200 mark if it survives the market volatility.
Will Ethereum Price Break Under $1,800?
Finally, the biggest altcoin in the market, Ethereum, holding a market capitalization of $217 billion, is back in the news. Currently, Ethereum holds its ground above the $1,800 mark, while the broader market sentiment gradually turns bearish.
Over the past two weeks, the Ethereum price has marginally outperformed Bitcoin as it has sustained above the $1,800 level. This drives the ETH-BTC pair to 0.01912 BTC and signals the possibility of a new comeback in Ethereum.
However, the biggest altcoin continues to trade under its 50-day exponential moving average line and fails to gain momentum. Despite the breakout of a critical resistance in its daily chart, the short-term pullback in Ethereum will likely extend to break under $1,800.
In the short term, the investor sentiment has spiked up with a new comment from Vitalik Buterin. The founder posted on May 3, stating the importance of a simple protocol.
However, the comment faced stronger criticisms from the likes of Adam Back, CEO of Blockstream. The veteran stated in his remark,
“I literally told him so a decade ago, but they still haven’t learned about balance vs utxo or the complexity of state, “rich state fullness” mistake. Redirecting miner revenue to the insiders with PoS etc. At this point just flush it before it hits 0, and buy Bitcoin.”
In conclusion, as Bitcoin and top altcoins hang close to crucial crossroads, the underlying weakness and the upcoming volatility spike with the FOMC meeting will likely result in a steeper correction. This could result in a price drop in Bitcoin to the $90,000 mark, while a steeper correction could be witnessed in altcoins.
The post Crypto Market Today: What to Expect From FOMC & SEC’s Announces 4th Crypto Discussion appeared first on CoinGape.
