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

▲ Bitcoin (BTC), Nasdaq (NASDAQ)/ChatGPT generated image ©

The cryptocurrency market is once again swayed by macro variables, falling alongside the New York stock market.

According to CoinMarketCap data as of 6:37 AM on April 29, Bitcoin (BTC) traded at $76,365, down 0.77% over 24 hours. Ethereum (ETH) fell 0.10% to $2,289, and XRP (Ripple) dropped 0.91% to $1.38, showing a general bearish trend across major coins. Solana (SOL) decreased by 1.61% to $83.78, and Tron (TRX) also fell by 3.67%, indicating increased selling pressure across altcoins. In contrast, only Dogecoin (DOGE) saw an individual rebound, rising 1.09% over 24 hours. The total market capitalization slightly decreased to around $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 down 0.49%, and the Nasdaq down 0.90%. Notably, concerns over OpenAI's growth potential intensified selling in technology stocks, with AI-related stocks such as Nvidia (-1.6%), Broadcom (-4.4%), AMD (-3.4%), and Oracle (-4.1%) all falling. The cryptocurrency market also showed a high correlation with technology stocks, experiencing a simultaneous downturn.

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 a resurgence of inflation. The stalled negotiations between the U.S. and Iran increased the likelihood of prolonged supply instability, which acted as a burden on risk assets across the board.

Market participants are strengthening their wait-and-see stance ahead of the Federal Open Market Committee (FOMC) meeting. While the market anticipates a freeze in the benchmark interest rate, if expectations for rate cuts recede due to Chairman Jerome Powell's remarks, additional downward pressure could be exerted on the cryptocurrency market. Conversely, if dovish signals emerge, 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 range is maintained, rebound attempts could continue, but a break below it could open up the possibility of a correction to the low $70,000s. On the upside, $80,000 acts 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 reports.

*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.*