Crypto Market Down Today: FOMC Meeting and ETF News Sparks Fear

Crypto Market Slips Amid FOMC Uncertainty and Whale Activity: What Investors Need to Know

The global cryptocurrency market is experiencing turbulence, with major tokens facing price corrections and investor sentiment shaken by looming economic decisions.

The total global crypto market capitalization has declined to approximately $2.92 trillion, marking a 0.77% drop in the last 24 hours. In contrast, the overall trading volume surged by 14.17%, reaching $63.45 billion, indicating heightened activity despite bearish pressure. Notably, decentralized finance (DeFi) contributed $5.23 billion, accounting for 8.24% of total daily trading, while stablecoins dominated the market with a whopping $60.73 billion—95.72% of the day’s volume. Bitcoin’s dominance also rose marginally to 63.97%, up 0.29% in 24 hours.

Source: X

 

FOMC Meeting Spurs Market Anxiety

At the center of this market pullback is growing anticipation surrounding the Federal Open Market Committee (FOMC) meeting, held on May 6–7, 2025. The FOMC, chaired by Federal Reserve Chair Jerome Powell, is tasked with reviewing key indicators of the U.S. economy and determining whether changes to interest rates are necessary. Since December 2024, rates have remained within the 4.25%–4.5% range, fostering uncertainty among global investors.

This particular FOMC meeting has drawn greater attention due to increased political pressure. President Donald Trump has reportedly advocated for a rate cut, aiming to stimulate growth ahead of the upcoming election cycle. While the Fed typically convenes eight times a year to address inflation and monetary policy, the implications of this specific meeting appear to be more significant. A surprise rate change could send shockwaves across the global financial and cryptocurrency markets.

Bitcoin Stalls, Whale Movements Add Pressure

Adding to the uncertainty is Bitcoin’s recent price stagnation. The flagship cryptocurrency has been trading in a narrow range between $93,989 and $95,033 for the past two days. As of this morning, Bitcoin is valued at approximately $94,242, reflecting a 0.77% intraday drop. Its market capitalization stands at $1.87 trillion, with a 24-hour trading volume of $22.79 billion.

Further unsettling investor confidence are recent activities by Bitcoin whales, or individuals and entities holding large amounts of Bitcoin. Data from blockchain analytics platform Lookonchain revealed that two whale addresses—previously dormant for over a decade—became active, collectively moving 3,422 BTC, equivalent to around $324.2 million.

In detail, one whale address transferred 2,343 BTC (approximately $221.7 million) after remaining inactive for 10 years. Another address moved 1,079 BTC ($102.54 million) after a 12-year hiatus. Such sizable and sudden movements often cause market participants to speculate about large-scale selloffs or strategic reallocation, contributing to further volatility.

Altcoins Follow Bitcoin’s Lead

The downturn has not been limited to Bitcoin. Several altcoins also registered losses amid the broader market correction.

Source: CoinMarketCap

XRP, the native token of Ripple Labs, dropped by 3% today and is currently priced around $2.10. This decline comes despite a positive Q1 2025 report from Ripple, which showed growth in institutional adoption and cross-border partnerships. However, the lingering SEC lawsuit continues to cast a shadow over investor sentiment.

Meanwhile, Litecoin (LTC) experienced a steeper decline, falling by 6.94% in the past 24 hours to $81.62. The drop appears to be tied to the SEC’s delay in approving a proposed Litecoin Exchange-Traded Fund (ETF), a decision that had been eagerly anticipated by the crypto community. The postponement has sparked disappointment and concern over the regulator’s stance on altcoin-linked investment products.

Key Economic Indicators to Watch

While the FOMC meeting remains the primary focus, other macroeconomic indicators could also influence crypto market movements in the coming days. These include:

• Official Bank Rate announcements from major central banks

• U.S. unemployment claims data, expected later this week

• Updates on inflation trends and consumer spending

• Statements from the European Central Bank (ECB) and other monetary authorities

Historically, the cryptocurrency market has reacted strongly to unexpected shifts in traditional financial systems. A dovish stance from the Fed—keeping interest rates unchanged or signaling a potential cut—could restore some confidence and trigger a short-term rally. Conversely, a surprise hike or hawkish tone may worsen the current downturn.

What This Means for Investors

Despite the current sell-off, many analysts believe that the market correction is a normal response to macroeconomic uncertainty. Periodic pullbacks are not uncommon in the crypto sector, especially during critical decision-making periods for global financial institutions.

Investors and traders are being advised to exercise caution, closely monitor developments from the FOMC meeting, and assess how Bitcoin, XRP, and other leading tokens react in the immediate aftermath. Market volatility is expected to persist through the week, especially as whale movements and regulatory concerns continue to unfold.

Technical analysts point to support zones around $93,000 for Bitcoin and suggest that if this level holds, a rebound could follow shortly after the Fed’s announcement. However, any break below this threshold might lead to increased bearish momentum.

Long-Term Outlook: A Familiar Cycle?

Despite the daily fluctuations, the long-term outlook for cryptocurrency remains bullish among several prominent market participants. Institutions continue to explore blockchain-based solutions, retail adoption is growing in developing markets, and developments in Web3 and decentralized finance (DeFi) are forging new use cases.

Nonetheless, the sector remains sensitive to external factors like regulation, interest rate changes, and geopolitical shifts. The rollercoaster nature of crypto prices is something seasoned investors have come to expect.

Looking ahead, several upcoming events could play a role in shaping the market’s direction:

• The launch of Ethereum’s next upgrade

• Developments in Bitcoin spot ETF approvals

• Expanding use cases for AI-integrated blockchain protocols

• Potential announcements from Asian and Middle Eastern crypto hubs

Conclusion

The cryptocurrency market is experiencing heightened volatility as investors await the outcome of the May 2025 FOMC meeting. Alongside macroeconomic concerns, whale activity and regulatory developments have contributed to today’s market downturn. While some traders see the current dip as a temporary setback, others are preparing for further corrections depending on how upcoming events unfold.

Investors are encouraged to stay informed, monitor market trends, and remain cautious in a highly reactive and dynamic environment. The next few days could prove pivotal in determining whether the market stabilizes—or enters another period of extended decline.

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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