#CryptoMarketsDipSlightly

Why Is the Crypto Market Down Today?

The crypto asset market has decreased by 0.67% in the last 24 hours as traders begin to reduce risk ahead of the FOMC decision on Wednesday. The total crypto market capitalization now tests US$2.54 trillion after rejecting the US$2.63 trillion resistance for the third time in two weeks.

Bitcoin fell 0.71% to US$76,812 within an upward channel that is starting to weaken, while MemeCore
M
leads the top 100 losers with a daily decline of 14% due to thinning trading volume.

Latest Crypto News Today:-

Solana developers support Falcon, a post-quantum signature scheme, with Anza and Firedancer releasing initial implementations on GitHub.
Senator Thom Tillis stated he will oppose the CLARITY Act unless ethical language banning federal officials from issuing digital assets is added.
Tom Lee’s Bitmine re-staked 112,656 ETH worth US$260 million, bringing the total staked ETH to 3,814,245 ETH or 75.11% of its position.
Crypto Market Cap Drops as Caution Ahead of FOMC Draws Liquidity

The total crypto asset market cap decreased by 0.66% to US$2.54 trillion, marking two consecutive session declines as traders reduce risk before the Federal Reserve policy announcement on April 29. TOTAL corrected after again rejecting the US$2.63 trillion resistance for the third time in recent weeks.

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This de-risking stance before the FOMC indicates no new negative catalysts yet. CME FedWatch shows a 99% chance of maintaining interest rates at 3.50% to 3.75%, but the biggest uncertainty lies in Powell’s press conference, which is the last before Kevin Warsh takes over on May 15.

Hawkish inflation policies, with March CPI at 3.3% and oil prices still high, will further tighten liquidity. Additionally, $281.83 million in liquidated long positions in the last 24 hours automatically reduce leverage in the system.

The next decision level is at US$2.49 trillion, serving as a proportional correction limit from the previous rise.

If US$2.49 trillion holds, TOTAL could potentially rebound to US$2.63 trillion. If it breaks below, the next decline targets are at US$2.34 trillion and US$2.27 trillion.

Bitcoin
BTCUSD
Falls Within Upward Channel as Volume Shrinks

Bitcoin
BTCUSD
dropped more than one percent to US$76,812 on the 8-hour chart, with the same pressure before the FOMC triggering a correction. BTC has been moving within an upward channel since February 24, but from April 14-27, divergence appeared, where prices kept rising but volume drastically declined. This volume reduction indicates that the rally toward US$79,567 was less confident among buyers.

The Fed factor further worsens this technical weakness. BTC has fallen after eight of the last nine FOMC meetings regardless of the decision outcome, leading traders to close long positions before Wednesday rather than hold them. The US$120.6 million liquidation of long positions in 24 hours reflects this pattern, with BTC alone accounting for US$120.6 million.

The trend remains positive as long as US$75,541 holds, which is the 0.236 Fib level in the channel structure. Closing the 8-hour candle above US$79,567 would reopen the path to the channel’s peak.

If it closes below US$75,541, the price risks dropping to US$73,050, with a deeper correction risk toward US$69,024.

MemeCore
M
Leads the Top 100 Losers with a 14% Daily Drop

MemeCore
M
is traded at US$3.68 after falling 14% in 24 hours, making it one of the top-100 assets with the largest decline. This correction was predictable earlier. From March 25 to April 25, M rose to a peak of US$4.857 while daily volume decreased throughout the rally, indicating divergence patterns that now weaken BTC’s channel.

Macro pressures further exacerbate this breakdown. Ahead of the FOMC, de-risking steps typically withdraw liquidity from speculative assets first, and meme tokens are at the forefront. It lost about 26% from its peak at US$4.85 in just a few days, breaking below the 0.236 Fib level at US$4.03 without support from buyers.

Currently, the price is between the 0.236 and 0.382 Fib levels at US$3.51, which is the nearest support and will determine whether buyers will re-enter. If the price manages to rise again to US$4.03 with stable volume, the path to the all-time high at US$4.85 could reopen. The US$3.51 level is the dividing line between a still manageable correction or a further 26% decline toward US$2.69.