Crypto Market Reduces Holdings by $40 Billion Ahead of Powell's Final FOMC Decision

Tuesday, crypto prices retreated as traders cut positions ahead of Federal Reserve Chair Jerome Powell's last Federal Open Market Committee (FOMC) meeting.
CME Group's FedWatch tool shows a 100% probability that interest rates will remain at 3.50% to 3.75% on April 29, making Powell's press conference the main focus for risk assets.
As the trend of risk reduction becomes apparent, the crypto market experienced a pullback.
Bitcoin (BTC) fell below $76,000, with the overall market cap dropping 1.8% to $2.62 trillion, losing nearly $40 billion in the past 24 hours.
This correction aligns with the pattern of Bitcoin and altcoins declining within 24 hours before each Federal Reserve decision.
Ethereum (ETH) dropped nearly 2%, XRP declined 2.2%, and BNB fell 0.7%, according to CoinGecko data.
This tide of decline coincides with reductions in leverage perpetual contracts and increased inflows into exchanges, both common signs of risk aversion ahead of macro events.
"Almost 10k BTC flooded into exchanges in a single day, with whale inflows accounting for over 70% of deposits. Honestly, this isn't random activity; it's large sums intentionally moving," an analyst observed.
Headline inflation approaches 3.3% to 3.5%, pressured by oil prices driven by conflicts in Iran and the Middle East, weakening the case for short-term rate cuts and reinforcing hawkish expectations in CME Group data.
"It feels like we've de-risked somewhat before tomorrow. The real move Bitcoin wants to make will happen later this week," one user noted.
Powell's Final Meeting Shifts Focus to Tone
This is widely seen as Powell's last appearance as Federal Reserve Chair, with Kevin Waugh set to succeed him in mid-May. CME data continues to reflect hawkish expectations, with a 100% probability that tomorrow's FOMC rate decision will remain unchanged.
"Focus shifts to tomorrow's FOMC meeting. Rates may stay steady, so all eyes will be on Powell's message. With inflation pressures and unresolved energy and global tensions, balancing price stability and growth becomes more complex," said Federico, an executive at Phemex.
Treasury yields rose slightly, with the 10-year approaching 4.33% to 4.36%, while the dollar remained strong amid safe-haven inflows. Volatility is expected to surge during Powell's press conference in the afternoon.
The next 24 hours may reveal whether Powell hints at an openness to future rate cuts or continues to emphasize vigilance on inflation, a tone that has historically shaped subsequent moves in cryptocurrencies.