Bitcoin Plunges 8% To Below $60K As Crypto Markets Have Worst Month Since FTX Imploded In November 2022

Updated: 01 May 2024

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Bitcoin plummeted more than 8% in the past 24 hours to trade at $56,900.42 as of 4:55 a.m. EST as crypto markets had their worst month since the implosion of crypto exchange FTX in November 2022.

The slump ended a seven-month winning streak for crypto markets and has sent the Crypto Fear & Greed Index plummeting from a reading of ”extreme greed” and optimism last month to ”neutral” today.

The overall market is flashing red after a flash crypto crash that sliced more than 7% off the market capitalization of the crypto industry. The downturn came on the same day as Binance founder Changpeng Zhao, known as CZ, was sentenced to four months in jail after he pleaded guilty to anti-money laundering violations.

It also came after a disappointing launch of Ethereum and Bitcoin ETFs (exchange-traded funds) in Hong Kong. The total trading volume on the opening day was just $12.4 million, compared with earlier estimates as high as $140 million.

Smaller Cryptos Plummet As Hopes Of Fed Interest Rate Cuts Fade

Altcoin leader Ethereum (ETH) saw its price plunge over 6%, while Binance Coin (BNB) and Solana (SOL) each recorded 24-hour losses greater than 7%.

Traditional markets also suffered after a series of U.S. economic reports on April 30 showed signs of slowing growth and increasing price pressures. Hopes that the U.S. Federal Reserve will start cutting interest rates dwindled as a result.

[AUDIO] Wednesday Preview Call: Market shaken up on prospect of just one Fed rate cut in 2024. pic.twitter.com/xLcyDIAm5m

— LMAX Group (@LMAX) May 1, 2024

This is weighing heavily on the digital asset sector, said Joel Kruger, a market strategist at LMAX Group, in an April 30 report. “We continue to see evidence of the Fed needing to be leaning back to a higher for longer policy outlook, despite investor calls for more accommodation.”

Bitcoin Still At Risk Of Further Downside

K33 is bearish towards the market leader and the rest of the crypto space. After months of optimism in the market, sentiment has now ”turned well and truly cautious,” it said in a post on X.

After months of optimism and increased prices, the market sentiment has now turned well and truly cautious.

Will "sell in May and stay away" once again be a sound strategy?https://t.co/rSrLCERVqM

— K33 Research (@K33Research) April 30, 2024