Coins also collapsed due to AI shock…Rebound or further decline ahead of FOMC?

▲ Bitcoin (BTC), Nasdaq (NASDAQ)/ChatGPT Generated Image ©

The cryptocurrency market has once again been swayed by macro variables, falling in tandem with the New York stock market.

According to CoinMarketCap data as of April 29, 6:37 AM, Bitcoin (BTC) was trading at $76,365, down 0.77% over 24 hours. Ethereum (ETH) fell by 0.10% to $2,289, and XRP (Ripple) dropped by 0.91% to $1.38, showing a general bearish trend across major coins. Solana (SOL) fell by 1.61% to $83.78, and Tron (TRX) also declined by 3.67%, expanding selling pressure across altcoins. In contrast, only Dogecoin (DOGE) rose by 1.09% over 24 hours, showing some individual rebound. The total market capitalization slightly decreased to approximately $2.56 trillion, and the Fear & Greed Index remained in the 'neutral' zone at 41.

This decline was directly linked to the weakness in the New York stock market. On April 28 (local time), the Dow Jones Industrial Average closed down 0.05%, the S&P 500 by 0.49%, and the Nasdaq by 0.90%. In particular, concerns over OpenAI's growth prospects intensified sell-offs in technology stocks, with AI-related stocks such as Nvidia (-1.6%), Broadcom (-4.4%), AMD (-3.4%), and Oracle (-4.1%) all declining. The cryptocurrency market also showed a correlated weakness, mirroring the tech stocks.

Furthermore, rising oil prices also pressured investor sentiment. Brent crude rose to $111.26, and West Texas Intermediate (WTI) crude climbed to $99.93, fueling concerns about re-accelerating inflation. Negotiations between the US and Iran reaching a stalemate increased the likelihood of prolonged supply instability, which acted as a burden on risk assets across the board.

Market participants are intensifying their wait-and-see approach ahead of the Federal Open Market Committee (FOMC) meeting. While the market anticipates a freeze in the benchmark interest rate, if expectations for a rate cut recede based on Chairman Jerome Powell's remarks, additional downward pressure could be exerted on the cryptocurrency market. Conversely, if dovish signals emerge, there is a possibility that they could act as a trigger for a short-term rebound.

In the short term, Bitcoin's ability to hold the $75,000 support level is considered a critical turning point. If this level is maintained, attempts at a rebound may continue, but a break below it could open up a correction to the low $70,000s. On the upside, $80,000 is acting as a major resistance level. Overall, the market has entered a phase heavily influenced by macroeconomic variables, and its direction is likely to be determined by the FOMC and big tech earnings announcements.

*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.*