The cryptocurrency market remains negative ahead of the ongoing banking problem in the United States and the FED FOMC meeting. According to the TOTAL metric, which measures the total market value, digital assets fell by an average of 2.40% in the first day of May.
According to statistics, approximately 35 billion dollars have been outflowed from cryptocurrencies in the last week. Behind the negative course in the market are the developments originating from the USA.
First Republic Bank Sold!
The American bank, which came to the fore with the decrease in the share price last week, was sold to JPMorgan through the government. First Republic Bank thus went down in history as the second-largest bankruptcy in US history.
Investors are not keen on buying cryptocurrencies as they are worried that similar bankruptcies may continue. After this development, the expectation about the FED's monetary policy meeting also changed.
Interest Rate Expectations Clarified Majorly
The eyes of the world are on the FED FOMC meeting, which will take place on Wednesday, May 3. Despite a noticeable decline in CPI, the persistence of core inflation affects expectations. According to FEDWatch data, 94% of market participants expect a 25bps rate hike.
