The cryptocurrency market has been exhibiting notable volatility in the lead-up to the upcoming Federal Reserve (FED) meeting, with a significant correction observed across major crypto assets and altcoins. As highlighted by prominent crypto analyst Michaël van de Poppe on Twitter on May 4, 2025, at 10:30 AM UTC, the market typically undergoes a correction in the week prior to such macroeconomic events, with an expected reversal around Tuesday, May 6, 2025 (Source: Twitter, CryptoMichNL). This observation aligns with historical market behavior during periods of uncertainty surrounding U.S. monetary policy decisions. Specifically, Bitcoin (BTC) saw a price decline of 4.2% from $62,300 on May 1, 2025, at 00:00 UTC to $59,700 by May 4, 2025, at 12:00 UTC, as reported by CoinMarketCap data. Ethereum (ETH) mirrored this trend, dropping 3.8% from $3,050 to $2,935 over the same period (Source: CoinMarketCap). Trading pairs such as BTC/USDT and ETH/USDT on Binance recorded heightened sell-off activity, with BTC/USDT volumes spiking by 18% to 1.2 million BTC traded in the 24 hours leading up to May 4, 2025, at 12:00 UTC (Source: Binance Exchange Data). On-chain metrics further confirm this bearish sentiment, as Glassnode data indicates a 15% increase in BTC outflows from major exchanges like Coinbase and Kraken between May 1 and May 4, 2025, suggesting investors are moving assets to cold storage amid uncertainty (Source: Glassnode). Additionally, the total market capitalization of cryptocurrencies fell by 3.5% to $2.1 trillion during this timeframe, reflecting broad-based selling pressure (Source: CoinGecko). For traders searching for insights on crypto market corrections before FED meetings, this data underscores the importance of monitoring macroeconomic catalysts and their direct impact on digital asset prices, especially for those looking to capitalize on potential reversals in Bitcoin price trends or altcoin trading opportunities.

Delving into the trading implications, the anticipated end of the correction around Tuesday, May 6, 2025, as suggested by Michaël van de Poppe at 10:30 AM UTC on May 4, 2025, presents actionable opportunities for both short-term and swing traders (Source: Twitter, CryptoMichNL). If the market indeed reverses, Bitcoin could target a resistance level of $64,000 by May 8, 2025, based on historical recovery patterns post-FED anticipation corrections, as noted in previous market analyses by CoinDesk (Source: CoinDesk Historical Data). For altcoins, tokens like Solana (SOL) and Cardano (ADA) could see amplified gains due to their higher beta relative to BTC. SOL, for instance, dropped 5.1% from $145 to $137.50 between May 1 and May 4, 2025, at 12:00 UTC, but its trading volume surged by 22% to 800,000 SOL on Binance during the same period, indicating potential accumulation (Source: Binance Exchange Data). On-chain activity for SOL also shows a 10% uptick in unique wallet transactions, as reported by Solscan on May 4, 2025, at 14:00 UTC, suggesting renewed interest (Source: Solscan). For traders exploring altcoin trading strategies, this could signal a buying opportunity ahead of the expected uptrend. Additionally, with the rise of AI-driven trading platforms, there’s a growing correlation between AI-related tokens like Fetch.ai (FET) and market sentiment. FET saw a modest 2.3% decline to $2.15 by May 4, 2025, at 12:00 UTC, but its trading volume rose by 30% to 5 million FET on KuCoin, reflecting AI token resilience amid broader market corrections (Source: KuCoin Exchange Data). This highlights a unique trading opportunity in the AI-crypto crossover space, especially for investors monitoring AI development influence on crypto market sentiment and searching for the best AI crypto tokens to invest in during volatile periods.

From a technical analysis perspective, key market indicators provide further clarity on potential entry and exit points for traders. Bitcoin’s Relative Strength Index (RSI) dropped to 42 on May 4, 2025, at 12:00 UTC, indicating oversold conditions and a potential reversal signal, as per TradingView data (Source: TradingView). The Moving Average Convergence Divergence (MACD) for BTC also showed a bearish crossover on May 3, 2025, at 18:00 UTC, but the histogram is narrowing, suggesting weakening downward momentum (Source: TradingView). For Ethereum, the 50-day Moving Average (MA) stands at $3,100, with the price testing support at $2,900 on May 4, 2025, at 12:00 UTC, per CoinMarketCap charts (Source: CoinMarketCap). Volume analysis reveals a 25% increase in ETH/USDT trading activity on Binance, reaching 2.5 million ETH in the 24 hours prior to May 4, 2025, at 12:00 UTC, indicating strong liquidity and potential for a breakout (Source: Binance Exchange Data). In the AI token space, Fetch.ai (FET) exhibits a bullish divergence on its 4-hour chart, with price lows stabilizing at $2.10 while RSI trends upward to 45 as of May 4, 2025, at 14:00 UTC (Source: TradingView). This correlation between AI-driven trading volume changes and crypto market dynamics is critical for traders. On-chain metrics for FET show a 12% increase in staked tokens on its network between May 1 and May 4, 2025, reflecting growing confidence in AI blockchain projects (Source: Fetch.ai Network Data). For those searching for technical analysis of Bitcoin before FED meetings or AI crypto trading signals, these indicators suggest monitoring volume spikes and RSI levels closely. As a bonus insight for traders, frequently asked questions include: What is the impact of FED meetings on crypto prices? Historically, FED policy announcements create short-term volatility, often leading to corrections of 3-5% in BTC and ETH prices in the preceding week, as seen in data from 2023-2025 (Source: CoinDesk). How do AI tokens correlate with market trends? AI tokens like FET often show resilience during broader market downturns due to niche investor interest, with volume increases of up to 30% during corrections (Source: KuCoin Exchange Data).