The surge in Bitcoin prices on the back of an uptick in the ФРС key rate and the regulator’s decision not to increase the pace of tightening policy was short-lived. The price of the leading cryptocurrency briefly touched a low not seen since late February 2022, near the $36,500 mark.
On the evening of May 5, Bitcoin traded near $35,500. At the time of writing, the price had rallied to around $36,500 — over the last 24 hours the asset had fallen 8.1% (CoinGecko).
According toCoinglass, over the last day the aggregate liquidation volume on the futures market exceeded $400 million.
Ethereum fell 6.3%, to $2,751. The biggest drop among the top-10 by market cap was Solana at -11.1%.
As of writing, the asset was trading near $36,900.
The decline was accompanied by sizeable liquidations — over $242 million in the last four hours, according to Coinglass.
The lead asset dragged the rest of the market down. According to CoinGecko, all top-10 assets by market cap were in the red.
Analysts at Santiment described the rise in Bitcoin’s price after the meeting of the FOMC as “anomalous” and noted that trader sentiment was broadly inclined toward selling.
😤 #Crypto traders appear to believe that yesterday’s market-wide price surge was an anomaly, and the short celebration won’t last. Historically, when calls for #selling spikes, crowd #FUD like this strengthens the case of a continued rise. 🙏https://t.co/o8gp8VqBn8 pic.twitter.com/s59c5USnMS
— Santiment (@santimentfeed) May 5, 2022
Earlier, Arcane Research warned that Bitcoin’s correlation with tech stocks had reached its highest level since July 2020. The current situation confirms this thesis.
After the opening of trading on the U.S. stock market, the Nasdaq Composite fell by almost 5%, and the S&P 500 lost 3.5%.
#DowJones Plunges 1,100 Points, Tech Shares Crater As Stocks Erase Gains From Post-Fed Rally
Stocks plunged: The Dow Jones Industrial Average was down 3%, around 1,000 points, while the S&P 500 lost 3.5% and the tech-heavy #Nasdaq Composite 4.7%.#WallStreet #US #Breaking pic.twitter.com/gGpoLCSiMt
— 🌎 Sarwar 🌐 (@ferozwala) May 5, 2022
Earlier in May 2022, trader and head of Factor LLC Peter Brandt predicted Bitcoin’s fall to $28,000.
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