Crypto Market Declines Amid Economic Data and Fed Policymakers' Stance

Bitcoin slid 3.52% to $60,876 on Friday, May 10, due to hawkish Fed commentary and US economic data. Meanwhile, some altcoins like Toncoin and Render showed strong bullish momentum, with Render's token price surging 40% since May 8.

Nitish Verma
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Crypto Market Declines Amid Economic Data and Fed Policymakers' Stance

Crypto Market Declines Amid Economic Data and Fed Policymakers' Stance

The crypto market experienced a decline on Friday, May 10, with Bitcoin (BTC) sliding by 3.52% to $60,876, reversing a 3.19% rally from the previous day. The decline was attributed to hawkish commentary from Federal Open Market Committee (FOMC) members, including Dallas Fed President Lorie Logan and Minneapolis Fed Neel Kashkari, who discussed the possibility of restrictive policies to bring inflation to the 2% target.

Why this matters: The crypto market's sensitivity to economic data and Fed policymakers' stance has significant implications for investors and the broader economy, as it can influence the direction of financial markets and impact global economic growth. As the crypto market continues to evolve, its interconnectedness with traditional financial systems will be closely watched, and its potential to amplify economic trends will be a key area of focus for policymakers and investors alike.

The US Michigan Consumer Sentiment and Inflation Expectation numbers were released on Friday, showing a fall in the Consumer Sentiment Index from 77.2 to 67.4 in May, while the Inflation Expectations Index rose from 3.2% to 3.5%. This led to a 3.11% slide in BTC in the hour following the report. According to Farside Investors, the US BTC-spot ETF market saw total net outflows of $84.7 million on Friday, as investors reacted to the US stats and hawkish Fed chatter.

Technical analysis showed that BTC remained below the 50-day Exponential Moving Average (EMA) while holding above the 200-day EMA, confirming the bearish near-term but bullish longer-term price trends. A BTC break above the 50-day EMA and the $64,000 resistance level could support a move toward the $69,000 resistance level. Conversely, a BTC fall through the $60,365 support level could bring sub-$58,000 levels into play.

Ethereum (ETH) also faced similar trends, sitting below the 50-day EMA while hovering above the 200-day EMA, affirming the bearish near-term but bullish longer-term price signals. An ETH break above the $3,033 resistance level could give the bulls a run at the 50-day EMA. A breakout from the 50-day EMA would support a move to the $3,244 resistance level.

Amidst the broader market decline, Toncoin (TON) and Render (RNDR) showed strong bullish momentum. Render Network's RNDR token price experienced a significant price increase after Apple featured its Octane 3D rendering software during a May 7 iPad presentation. RNDR has seen an overall 40% increase since May 8, reaching $11.54 on May 10, according to CoinMarketCap data.

RNDR's price growth reflects a broader trend within the artificial intelligence (AI) sector, with other AI-related tokens, including The Graph, (FET), and SingularityNET (AGIX), also witnessing major gains since May 6. Market analysts are closely monitoring Nvidia, as its Q1 2024 earnings report, expected on May 22, could greatly influence the trajectory of AI-related tokens, including RNDR.

In addition to the growth of RNDR and other AI-related tokens, presale investing in projects like Mega Dice Casino's DICE token offers potential for exponential gains. This presents an opportunity for investors to get in on the ground floor of promising projects and potentially reap significant rewards.

Overall, the crypto market was impacted by the hawkish Fed policymakers and US economic data, leading to a decline in BTC and ETH prices. However, some altcoins showed strong bullish momentum, and presale investing opportunities offered potential for exponential gains. As the market navigates these developments, investors will be closely watching key indicators and events, such as Nvidia's upcoming earnings report, to gauge the future direction of the crypto space.