Crypto Markets Slide Ahead of Fed Meeting

The cryptocurrency market started the week in the red on Monday, May 5, after renewed tariff talk from US President Donald Trump dampened investor sentiment.

Bitcoin (BTC) fell 1.8% over the past 24 hours to around $94,000, while Ethereum (ETH) declined 1.4% to approximately $1,805. XRP experienced sharper losses, dropping 3.1% to $2.13, while Solana (SOL) slipped 1.7% to $144.

The total cryptocurrency market capitalization decreased 2.9% to $3.04 trillion, according to CoinGecko data.

Leveraged liquidations over the past 24 hours totaled $222 million across 78,436 traders, per CoinGlass. BTC liquidations amounted to around $89 million, while ETH liquidations totaled $39 million.

Experts attribute Monday’s market losses to renewed tariff threats from President Trump, which have reignited trade war concerns. Over the weekend, President Trump announced that he would support a 100% tariff on foreign-made movies in a bid to “save” Hollywood.

The market weakness comes as investors await the Federal Reserve’s upcoming policy decision – the Fed is scheduled to announce its next interest rate move on Wednesday, May 7, at 2 pm EST.

ETFs and Investment Products

Bitcoin and Ethereum exchange-traded funds (ETFs) continued to attract capital last week, with spot Bitcoin ETFs recording $675 million in inflows on May 2. Spot Ethereum ETFs followed, drawing a more modest $20 million, per SoSoValue.

More broadly, digital asset investment products recorded a third straight week of inflows, totaling $2 billion for the week and $5.5 billion over the past three weeks, according to data from CoinShares.

Bitcoin led the pack, pulling in $1.8 billion. Meanwhile, Ethereum posted its second straight week of strong gains, bringing in $149 million last week for a two-week total of $336 million. Solana (SOL) recorded more modest inflows of $6 million.

“Looking forward, if ETF flows remain strong and the Fed delivers a balanced message, Bitcoin could extend its current rise,” said Quasar Elizundia, a research strategist at Pepperstone. “However, a hawkish tone or renewed concerns about US recession risks may limit upside in the short term.”

In other ETF news, asset manager VanEck has filed with the U.S. Securities and Exchange Commission (SEC) to launch the first-ever BNB ETF. Following the announcement, BNB rose nearly 2%.