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▲ Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), Cryptocurrency Decline/AI Generated Image
Ahead of the final regular Federal Open Market Committee (FOMC) meeting, chaired by Federal Reserve (Fed) Chairman Jerome Powell, a large amount of capital flowed out of the virtual asset market. As investors intensified the so-called 'risk-off' phenomenon, reducing their exposure to risky assets to avoid uncertainty, tens of trillions of won in market capitalization evaporated in a single day.
According to a report by virtual asset specialized media BeInCrypto on April 28 (local time), Bitcoin (BTC) price fell below $76,000, and the total virtual asset market capitalization decreased by approximately 1.8% over the past 24 hours, reaching $2.62 trillion. In monetary terms, about $40 billion in value disappeared in a single day. This downturn repeats a typical pattern where Bitcoin and major altcoins show weakness starting 24 hours before the Federal Open Market Committee decision.
Ethereum (ETH) fell by approximately 2%, and XRP plummeted by 2.2%, leading the market decline. BNB also could not avoid weakness, dropping by 0.7%. Notably, the influx of Bitcoin into exchanges surged, increasing selling pressure. On-chain data confirmed that approximately 10,000 BTC were deposited into exchanges in just one day, with over 70% of this volume identified as coming from large investors, or "whales." This suggests that it's not merely individual investor movements, but rather big players liquidating positions with clear intentions.
The market's eyes are on Chairman Powell's final interest rate decision and press conference, to be announced on the 29th local time. According to CME FedWatch, the probability of the Federal Reserve freezing the current interest rate, which ranges from 3.50% to 3.75%, is 100%. Investors are focusing more on the tone of Powell's future monetary policy and the policy guidelines he will hand over to the next chairman nominee, Kevin Warsh, rather than the interest rate figures themselves. Powell is regarded as the figure who led the most aggressive tightening cycle since Paul Volcker, raising interest rates from 0% to 5.5%.
Currently, US inflation is stagnating at around 3.3%, and Bitcoin has seen a significant correction from its peak of $126,000 recorded at the end of last year. In early March, $1.47 billion flowed into Bitcoin spot ETFs, attempting a rebound, but after the previous Federal Open Market Committee meeting, capital outflows began again, solidifying the downward trend. Experts predict that if there are no clues about interest rate cuts in Powell's farewell speech, a further decline in the virtual asset market will be inevitable.
The virtual asset industry is also paying attention to the actions of nominee Warsh, who will emerge after Chairman Powell's retirement. Warsh is known to have a favorable stance on virtual assets, but the dominant analysis is that he will show a more hawkish tendency than Powell in suppressing inflation. The fate of Bitcoin's $70,000 support level will likely be determined by how well Powell manages market expectations in his final meeting.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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