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Bitcoin, Ethereum, XRP, and Solana Plummet: Market Analysis After the Fed Meeting

The Federal Reserve cut interest rates this month, but the cryptocurrency market's reaction was far more muted than many expected. Investors had expected an immediate surge in Bitcoin (particularly altcoins), but Bitcoin instead continued to trade sideways.

Bitcoin fell to approximately $112,761, down over 3% over the past week; Ethereum fell to $4,086, down over 11% over the same period. XRP dropped to $2.89, down over 6%, and BNB retreated to $1,007. Solana experienced the largest correction among major assets, falling over 15% to $208.
 
Solana Price Prediction: Key Levels to Watch as SOL Struggles for Momentum

Solana (SOL) is currently trading at $201.32, having risen 3.44% over the past day, with daily trading volume approaching $8.8 billion. Ranked sixth by market capitalization at $109.4 billion, Solana's momentum is being closely watched by traders, especially as institutional capital begins to circulate around the asset.

Market analysts expect the U.S. Securities and Exchange Commission (SEC) to rule on several Solana-backed ETF applications in mid-October. Several institutions, including Franklin Templeton, Fidelity, Bitwise, Grayscale, VanEck, and CoinShares, have already submitted updated S-1 forms.
 
Solana Price Prediction: Key Levels to Watch as SOL Struggles for Momentum

Solana (SOL) is currently trading at $201.32, having risen 3.44% over the past day, with daily trading volume approaching $8.8 billion. Ranked sixth by market capitalization at $109.4 billion, Solana's momentum is being closely watched by traders, especially as institutional capital begins to circulate around the asset.

Market analysts expect the U.S. Securities and Exchange Commission (SEC) to rule on several Solana-backed ETF applications in mid-October. Several institutions, including Franklin Templeton, Fidelity, Bitwise, Grayscale, VanEck, and CoinShares, have already submitted updated S-1 forms.
 
According to a comprehensive report by Artemis Analytics, the crypto payments landscape has undergone a dramatic transformation: crypto debit card transaction volume has surged from approximately $100 million per month at the beginning of 2023 to over $1.5 billion by the end of 2025. This impressive compound annual growth rate of 106% makes it comparable in scale to stablecoin peer-to-peer transfers.
 

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Despite the recent pullback in the crypto market, funds continue to flow into XRP spot ETFs. This phenomenon supports bullish expectations for XRP's price movement, suggesting that Wall Street whales are quietly accumulating positions during the market downturn.

According to data from SoSoValue, since the initial listing of the first XRP ETFs in the US, the series has recorded net outflows on only one day, maintaining a steady net inflow trend the rest of the time.

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Bitcoin fell 4% on Wednesday to around $88,000, as a sharp round of leveraged liquidations swept through the crypto market, adding further pressure to an already stressful week driven by a broad-based safe-haven rush in stocks, bonds, and currencies.

Spot gold broke through $4,800 an ounce for the first time, while silver also hit a record high. The dollar weakened amid widespread “sell America” trading as investors continued to flock to safe-haven assets.

CoinGlass liquidation data showed that 181,570 traders were liquidated in the past 24 hours, totaling $1.07 billion. Long positions bore the brunt of the liquidation, amounting to $998.33 million, while short positions saw $71.39 million liquidated.

Market Snapshot

Bitcoin: $88,942, down 4%
Ethereum: $2,963, down 7.1%
XRP: $1.90, down 3.8%
Total Cryptocurrency Market Cap: $3.09 trillion, down 3.9%
 
After a pullback, the market entered a more nuanced phase of divergence. As Bitcoin approached $89,000, selling pressure showed signs of easing, and the price action gradually formed a double-bottom pattern. The latest price is consolidating around $89,600, a nearly 4% drop for the day. The overall crypto market remains under pressure, with Ethereum falling about 7% to $2,998, and Solana and XRP also dropping by more than 5%.

Even so, the market appears to be undergoing a controlled risk adjustment rather than a full-blown panic sell-off, with capital allocation still leaning towards Bitcoin.

The total market capitalization of cryptocurrencies is approximately $3.02 trillion, with a 24-hour trading volume of approximately $133.25 billion. The Fear & Greed Index is at 42, which is in the neutral range, while the Altcoin Seasonal Index is only 27/100, indicating that funds tend to choose assets with relatively controllable volatility and deeper liquidity in an uncertain environment. This preference makes it easier for Bitcoin to find support during declines and also increases the observation value of key support zones.
 
Bitcoin fell below $90,000 on Friday. Asian stocks edged higher after the Bank of Japan kept interest rates unchanged, as investors assessed the softening of US tariff rhetoric and the resilience shown by the US economy.

The MSCI Asia Pacific Broad Equity Index (excluding Japan) rose 0.4%, and Japan's Nikkei index rose 0.3%.

The Bank of Japan kept interest rates unchanged at around 0.75% after concluding its two-day policy meeting on Friday.

This followed the Bank of Japan's December rate hike, which pushed borrowing costs to their highest level in 30 years, as policymakers judged the likelihood of achieving their 2% inflation target had increased.
 
The crypto market is entering a new narrative shift, with funds simultaneously tracking the institutionalization progress of mainstream tokens and seeking explosive infrastructure themes. Recently, the focus has been on two cryptocurrencies: XRP

driven by market expectations fueled by its Davos speech, and Bitcoin Hyper, positioned as Bitcoin Layer 2, boosting pre-sale hype.

The former leans towards the repricing of existing assets, while the latter presents a growth story packaged with a new architecture. Together, they outline the investment preferences and risk appetite in 2026.

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Bitcoin (BTC) experienced a downturn at the start of the week, with market sentiment quickly shifting from optimistic to pessimistic. Just last week, some investors were discussing the possibility of reaching the $100,000 mark, but this week's sentiment has taken a sharp turn, with Bitcoin falling below the support level near $90,000.

Several factors are weighing on Bitcoin's price, one of which is Donald Trump's rhetoric surrounding Greenland. As tensions continue to escalate, this conflict has now spilled over into the realm of tariffs.

After several countries publicly opposed Trump's proposal to bring Greenland under US control, he announced a new 10% tariff package targeting these countries. This has added another layer of uncertainty to the market.

Trump's tariff policies are back on the agenda – or rather, they never truly left, but recent developments have brought them back into the spotlight. In January of this year, the US Supreme Court held several hearings, which investors hoped would clarify whether the president has the authority to impose tariffs of this magnitude.

However, the court has yet to make a ruling. This lack of clarity leaves Bitcoin and the broader cryptocurrency market in a state of **"limbo" or stagnation**.
 
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