Bitcoin fell 8%, plunging below $60,000 as the cryptocurrency market suffered its worst month since the FTX collapse in November 2022.

Bitcoin sudden drop The cryptocurrency market has had its worst month since the collapse of cryptocurrency exchange FTX in November 2022, gaining more than 8% in the last 24 hours to trade at $56,900.42 as of 4:55 a.m. ET.

The slump ended the cryptocurrency market’s seven-month winning streak. Cryptocurrency Fear and Greed Index Last month’s interpretation of ‘extreme greed’ and optimism plummeted to ‘neutral’ today.

The overall market is in the red following the flash cryptocurrency collapse, which slashed the market capitalization of the cryptocurrency industry by more than 7%. The recession came on the same day that Binance founder Changpeng Zhao, known as CZ, was sentenced to four months in prison after pleading guilty to anti-money laundering violations.

It also came after a disappointing launch. Ethereum and Bitcoin ​​ETF (Exchange Traded Fund) Hong Kong. Total opening day volume was just $12.4 million, compared to previous estimates of $140 million.

Smaller cryptocurrencies plummeted as hopes of a Federal Reserve interest rate cut faded.

Altcoin Leader Ethereum (ETH) saw its price plunge by more than 6%, while Binance Coin (BNB) and Solana (SOL) each recorded 24-hour losses of more than 7%.

Traditional markets also suffered after a series of US economic reports on April 30 showed signs of slowing growth and increasing price pressures. As a result, there are hopes that the US Federal Reserve (Fed) will start cutting interest rates.

(Audio) Wednesday Preview Call: Markets are rocked by the prospect of only one Fed rate cut in 2024. pic.twitter.com/xLcyDIAm5m

— LMAX Group (@LMAX) May 1, 2024

This is weighing heavily on the digital asset sector, Joel Kruger, market strategist at LMAX Group, said in an April 30 report. “We continue to see evidence that the Fed needs to lean toward higher rates for a longer policy outlook, even as investors demand more accommodation.”

Bitcoin is still at risk of further decline.

K33 is bearish against the market leaders and the rest of the cryptocurrency space. After months of optimism in the markets, sentiment has now become “very cautious and cautious,” he wrote in a post on X.

After months of optimism and price increases, market sentiment has now shifted to a very cautious direction.

Will ‘selling in May and stepping down’ be a sound strategy again? https://t.co/rSrLCERVqM

— K33 Research (@K33Research) April 30, 2024

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