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Why Bitcoin (BTC) didn’t rise like gold after the Fed meeting

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Bitcoin after the Fed meeting

After the Fed meeting, expectations for an imminent pause in the central bank’s tightening cycle rose. This allowed BTC to peek above $29,000 and gold to renew its all-time high of $2,079.52.

At the end of yesterday’s meeting, the U.S. Federal Reserve raised its rate range by 25 bps, but removed the phrase about the need for further tightening from the accompanying statement. This boosted Bitcoin (BTC) to a high of $29,241 in New York trading. Ethereum (ETH), Cardano (ADA) and Solana (SOL) also saw gains.

Gold was the strongest performer

On May 3, the Fed raised its key interest rate again to a 17-year high, but in a follow-up press conference, central bank governor Jerome Powell signaled that the hike could be followed by a pause. He also suggested that he did not think a recession in the U.S. was something inevitable.

The spot price of gold jumped to a record $2,079.52 ahead of the Fed’s verdict announcement. Gold futures also rose to $2,051.40. Saxo Bank analyst Ole Hansen commented that the ongoing saga of the U.S. government debt ceiling and “long-term stagnant inflation” will drive gold prices higher. As of this writing, gold was trading at around $2,050 on the spot market. 

On May 28, the U.S. will release statistics on personal consumption expenditures. This inflation index is closely watched by the Fed, so it too can set the further vector of movement for gold and bitcoin.

Why BTC didn’t shoot up

Meanwhile, yesterday it also became known that another bank in the U.S. was on the verge of closure. The new victim was PacWest Bancorp. News of the new round of the banking crisis is also bullish for the BTC.

As B2C2, a cryptocurrency broker, commented, “The rally triggered by the banking crisis earlier this year had everything to do with a flight to safe havens and non-custodial ways to store funds, coupled with a shift away from the dollar.”

However, despite such a favorable set of circumstances for BTC, the cryptocurrency did not rally. The price did break above the round mark of $29,000 for a while, but then it rolled back, and at the moment of writing was trading around $28,900.

The problem turned out to be insufficient market depth. The current low liquidity, in turn, is a consequence of the recent turmoil associated with the collapse of FTX and Alameda, which significantly undermined bitcoin liquidity as well. According to some analysts, that’s what prevented the BTC rate from fixing above $30,000.

Moreover, bitcoin could continue to have problems if U.S. regulators continue to prevent institutional money from flowing into the crypto space. In particular, investors are now anxiously watching how the crusade announced by U.S. regulators against cryptocurrency exchange Binance will end, as well as the Genesis bankruptcy proceedings.

Overall, as experts at trading platform Dexterity Capital comment, “There is still no significant organic momentum behind cryptocurrencies. Important events that drive currencies and help move prices… are few and very rare.

We previously reported that the Bybit decided to enter the lending market.

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Analyst: Skip Bitcoin FOMO, Altcoins Offer Better Gains Now

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Bitcoin (BTC) has sent the crypto community into delirium, hitting a new all-time high (ATH) of almost $119,000 after brief stops around $113,000 and $116,000.

However, despite the excitement, prominent analyst CrediBULL Crypto has cautioned traders not to chase the rally blindly, suggesting that the real opportunity lies in altcoins, not Bitcoin.

Why BTC FOMO Could Be Costly

With BTC currently over 650% above its ideal accumulation zone, CrediBULL posted a stark warning on X:

“The big opportunity for gains is on ALTS even if Bitcoin is the one that is ‘leading’ this move.”

He added that anyone buying the asset at this particular point should only do so for an active trade with a clear setup.

“If you can’t identify a trade setup then there is no reason to buy Bitcoin at these levels as there are much better opportunities in alts from a R/R perspective at current levels.”

His comments echoed a broader sentiment emerging from key market voices, including former BitMEX CEO Arthur Hayes and YouTuber Crypto Rover, who likened the current market cycle to November 2024, when a major altcoin rally followed Bitcoin’s price surge.

In a recent tweet, Hayes said he had reversed his previously bearish stance, citing Bitcoin’s strong breakout and the rising dominance of Ethereum (ETH).

“Get ready for a monster alt szn,” he wrote, signaling increased institutional confidence. The crypto entrepreneur also reported that his Maelstrom Fund is ramping up altcoin exposure amid expectations of favorable political and macroeconomic shifts.

Observers have described the flagship cryptocurrency’s latest move as structurally different from past bull cycles. According to CryptoQuant, it isn’t driven by speculative angst, but rather by strategic accumulation and restrained selling activity.

Additionally, metrics like the MVRV ratio, currently 2.2 vs. over 2.7 in previous tops, SOPR, and MPI all hint at a sustainable rally with long-term potential. The drop in exchange balances, down over 21% in four months, also suggests that holders are in no rush to exit their positions.

Altcoins on the Mend

However, even with BTC in price discovery mode, Ethereum and several other altcoins are beginning to outshine it in percentage gains. ETH, for instance, is up by more than 18% in the last seven days, beating Bitcoin’s 8.9% rise in the same period. It has also reclaimed the $3,000 level and is setting its sights on $3,350–$3,500.

Meanwhile, Cardano (ADA) has pumped 23.7% across the week, reclaiming critical support at $0.64 and eyeing a return to $1. Hyperliquid (HYPE) is up nearly 19%, having set a new all-time high at $46.25, and is now targeting the $50 psychological threshold.

Even Solana (SOL) is catching a bid, with prices climbing above $164 and showing potential for a rally beyond $180.

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XRP Breaks Free With Double-Digit Gains — Flips USDT in Market Shake-Up

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TL;DR

  • The consolidation phase for many altcoins, including XRP, seems to be over, and Ripple’s native token is on the run again toward $3.
  • On its way up, it managed to surpass USDT in terms of market cap and is now back in the third spot after months of hiatus.
XRPUSD. Source: TradingView
XRPUSD. Source: TradingView

The graph above clearly demonstrates the price stagnation XRP had to endure for the past month or so. Its upper boundary was at around $2.6, while it also tested the lower one at $1.9 during the darkest hours of the war between Israel and Iran.

Nevertheless, each attempt met immediate rejections, and the cryptocurrency was pushed south to a tight range between $2.2 and $2.3. However, there were multiple signs that the consolidation could be coming to an end, and one analyst even warned that most traders will miss the breakout.

Such a price surge indeed started to materialize in the past few days, and especially today. XRP has been among the top performers on a daily scale, having surged by 20% at one point and coming close to $3 on most exchanges.

Although it was stopped there and now sits just under $2.8, it’s still up by over 12% since yesterday. Its market cap has spiked above $160 billion for the first time in months, and XRP has now become the third-largest cryptocurrency, by overtaking Tether’s USDT.

The move north was quickly picked up by the XRP Army, many of whom praised the asset’s performance and provided some bullish (and outrageous) predictions.

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Bitcoin Breaks ATH, Hayes Flips Bullish: ‘Maelstrom Is Backing Up the Truck’

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BitMEX co-founder Arthur Hayes has decisively flipped bullish and even announced that Maelstrom Fund is “backing up the truck.” The exec’s comments came as Bitcoin (BTC) broke through its all-time high above $118K on strong volume.

He also revealed that Ethereum (ETH) began to follow with potential outperformance, and markets began pricing in a Trump administration’s readiness to ease trade tensions.

From Bearish to Bullish

This pivot follows Hayes’ prior cautious stance, which was rooted in concerns about a Treasury General Account (TGA) refill draining liquidity.

In his previous essay, Hayes explained that the US Treasury Secretary, whom he calls “The Big Bessent Cock (BBC),” faces an impossible task: funding ballooning deficits without causing a bond market revolt. To manage this, the government is turning to innovative liquidity engineering, including stablecoin adoption by “too big to fail” (TBTF) banks, which could unlock up to $6.8 trillion in T-bill buying power.

Hayes also noted that if the Fed stops paying interest on reserves, it could unleash another $3.3 trillion, bringing the total potential liquidity injection to $10.1 trillion.

He argued this approach was the modern replacement for QE, by maintaining equity markets and crypto afloat despite the Fed’s tightening posture. The exec warned that the TGA refill could briefly interrupt crypto’s bull momentum.

Despite this, Bitcoin’s resilience in busting through resistance while Ethereum appears to be positioning for a “monster alt season.”

“Frontloading Ahead of Trump Tariffs”

Adding to this backdrop, QCP Capital, in its latest analysis, also identified frontloading ahead of potential Trump tariffs as a key macro driver. Manufacturers are accelerating imports and production to preempt implementation, which has led to increased trade and manufacturing credit and improved liquidity conditions.

The firm views the current environment as supportive for continued crypto upside, with steady ETF inflows and strong structural demand boosting momentum.

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