Crypto markets are trading cautiously, with the Fed widely expected to hold rates steady tomorrow.
Crypto markets are stuck in neutral as traders weigh a closed Strait of Hormuz, hawkish dissent at the Bank of Japan, and Jerome Powell’s final Fed meeting, all falling within the same 48-hour window.
Bitcoin is trading at $76,360, down 0.7% over 24 hours, after failing twice in the past week to reclaim $80,000, per CoinGecko data. Ether ticked up 0.3% to $2,299, though the second-largest cryptocurrency is still marginally lower over the past seven days.
The total crypto market capitalization slipped 0.5% to $2.64 trillion.
The macro situation dominated heading into Tuesday’s session. WTI crude futures for June delivery traded 3% higher near $100 per barrel as traders weighed Iran’s offer to reopen the Strait of Hormuz only if the U.S. lifts its blockade. The chokepoint has been closed since February 28, triggering one of the most significant energy shocks in modern history.
The Bank of Japan kept its benchmark interest rate unchanged at 0.75% earlier today, though the decision was not unanimous, with three members calling for a hike. The yen rose while Bitcoin remained under pressure. The Federal Reserve’s two-day FOMC meeting kicks off today, with markets pricing in a near-certainty that rates will remain unchanged. Tomorrow’s decision marks Jerome Powell’s last meeting and press conference as Fed Chair before his term ends on May 15, with Kevin Warsh expected to take over.
ETF Flows
The structural ETF bid that anchored the recent consolidation broke on Monday. U.S. spot Bitcoin ETFs logged $263 million in net outflows on April 27, ending a nine-day streak that pulled in roughly $2.11 billion through April 24, per SoSoValue data.
Cumulative net inflows since launch now sit at $58.30 billion, with total ETF net assets at $101.23 billion as of April 27, equivalent to roughly 6.5% of Bitcoin’s market cap.
Altcoin Movers
MemeCore (M) is today’s biggest loser, dropping 15% over the past 24 hours and 21% on the week to $3.38, per CoinGecko.
Privacy token Zcash (ZEC) fell 5.6% on the day to $334 but remains 8.4% higher over seven days, while Hyperliquid’s HYPE slid 3.8% to $40 but eked out a 2.7% weekly gain. Stellar’s XLM is up 8.8% on the week despite today’s pullback.
Among the top 10, XRP, TRON and Solana slipped by 0.3% to 0.8%, while Dogecoin bucked the broader weakness with a 1.8% gain.
Looking ahead, near-term price action hinges on whether the Fed’s tone on Wednesday is dovish enough to offset oil-driven inflationary pressures and geopolitical tensions.