Bitcoin Trades Around $57K, Crypto Market Drops 7% in Run-Up to Fed Decision

Bitcoin fell in line with the broader crypto market; Ethereum and other altcoins also fell.

Financial markets were under pressure due to risk aversion ahead of the Fed’s interest rate decision and press conference later today.

Bitcoin {{BTC}} was trading around $57,000 on Wednesday morning in Europe, after falling to its lowest level since late February as the world’s largest cryptocurrency recorded its worst month since November 2022.

BTC is down nearly 7.5% over the past 24 hours, falling below the $60,000 support level late Tuesday, according to CoinDesk data. The broader crypto market, as measured by the CoinDesk 20 Index (CD20), lost almost 9% before recovering some of the decline.

Cryptocurrencies are being tracked by risk aversion in broader financial markets amid stagflation sentiment in the US following slow growth and sticky inflation indicators that dampen hopes of a Federal Reserve rate cut. The Federal Open Market Committee is expected to announce its final interest rate decision later today.

Ether {{ETH}} fell more than 8% to below $3,000, while dogecoin {{DOGE}} led declines among other major altcoins, falling 11%. Solana {{SOL}} and avalanche {{AVAX}} both lost approximately 7%.

Bitcoin crashed in April, returning its first monthly loss since August. The 16% drop was the worst since November 2022, when crypto exchange FTX crashed.

UPDATE (May 1, 8:56 UTC): Prices are updated throughout.

UPDATE (May 1, 9:57 UTC): Prices are updated throughout.