Bitcoin and Altcoins Brace for Volatility Ahead of Fed Decision

As the Federal Reserve’s FOMC meeting approaches, the cryptocurrency market is showing signs of bearish sentiment, with altcoins particularly vulnerable to a potential downturn. The altcoin market cap, which recently broke a descending trendline from January, is now forming a concerning M-pattern above critical support at $1.01 trillion. Technical indicators suggest growing vulnerability, with a 50% correction level looming. This development has raised concerns among investors, as a hawkish stance from the Fed could further depress risk assets, including Bitcoin and altcoins. The market’s reaction to the Fed’s decision will be closely watched, as it could set the tone for cryptocurrency performance in the coming weeks.

Altcoins Face Potential Rollover Ahead of Fed Meeting

The cryptocurrency market exhibits bearish sentiment as altcoins teeter on the edge of a significant downturn. With the Federal Reserve’s FOMC meeting looming, a hawkish stance could further depress risk assets. The altcoin market cap, which recently broke a descending trendline from January, now forms a concerning M-pattern above critical support at $1.01 trillion.

Technical indicators suggest growing vulnerability. The 50% correction from recent highs hasn’t broken the broader uptrend, but failure to hold current levels may trigger cascading selloffs. Market participants await macroeconomic cues that could determine whether this consolidation becomes a full-scale reversal.

Kevin O’Leary Slams U.S. Bitcoin Reserve Push: “It Will Never Happen”

Shark Tank investor Kevin O’Leary has dismissed the notion of the U.S. adopting Bitcoin as part of a national reserve strategy, citing a lack of bipartisan support and questioning the motives of prominent advocates like MicroStrategy’s Michael Saylor.

Global crypto adoption continues to rise, yet U.S. institutions remain hesitant. O’Leary’s blunt assessment underscores the political and ideological hurdles facing Bitcoin’s integration into formal financial frameworks.

The debate highlights a growing divide between crypto enthusiasts and traditional financiers. While digital assets gain traction worldwide, regulatory uncertainty and institutional skepticism persist in America.

Florida Withdraws Bitcoin Reserve Bills Amid Legislative Setbacks

Florida has halted its push to establish a Strategic Bitcoin Reserve, withdrawing two key bills—House Bill 487 and Senate Bill 550—that sought to enable public investment in the cryptocurrency. Despite bipartisan support, neither advanced beyond preliminary committee hearings.

Samuel Armes of the Florida Blockchain Business Association hinted at potential revival through budget negotiations, suggesting the debate isn’t closed. The move contrasts with growing interest in Bitcoin reserves among other U.S. states.

Bitcoin Miners Hold Steady Amid Market Volatility, Signaling Confidence in BTC’s Upside

Bitcoin miners are exhibiting unwavering confidence in the cryptocurrency’s long-term potential, despite macroeconomic headwinds and a 32% retreat from its 2024 peak. On-chain data reveals miner reserves have remained stable at 1,808,674 BTC as of May 5—showing negligible deviation from December 2024 levels.

The resilience suggests a strategic holding pattern, with miners avoiding large-scale sell-offs even as operational costs pressure liquidity needs. This behavior mirrors the disciplined accumulation phases seen in previous bull cycles, where supply-side restraint preceded major price appreciation.

UK Treasury Rejects National Crypto Reserve, Contrasting U.S. Bitcoin Strategy

The UK government has explicitly ruled out establishing a national cryptocurrency reserve, distancing itself from the U.S. approach of accumulating Bitcoin as a strategic asset. Economic Secretary to the Treasury Emma Reynolds MP stated at the Financial Times Digital Asset Summit that such a move is "not the plan for us," emphasizing the UK’s divergent regulatory philosophy.

While dismissing Bitcoin stockpiling, Reynolds revealed ongoing high-level collaboration with U.S. officials through a dedicated working group. This transatlantic dialogue focuses on harmonizing digital asset policies, suggesting the UK prefers regulatory coordination over direct crypto asset acquisition.

The decision reflects growing global divergence in institutional crypto strategies, with the UK opting for a more conservative stance compared to aggressive accumulation by some nation-states. Market observers note this could influence institutional adoption trends for BTC and other major cryptocurrencies.