The crypto markets have been experiencing major volatility lately, which has been amplified by the recent selloff intensifying the bearish sentiment. Many are wondering: Will the crypto crash get even worse?
To understand where we could be heading, it's important to look at the historical context. $BTC has experienced multiple boom and bust cycles over its relatively short lifetime. However, the magnitude of the price swings has diminished with each cycle as the asset has matured.

$BTC During the last major bull run in 2017, Bitcoin saw multiple corrections in the 30% range before eventually topping out near $20,000. The subsequent bear market took it back under $4,000 by late 2018 - an 80%+ drawdown.
Similarly, in the second half of 2022, Bitcoin experienced a significant crash. The cryptocurrency market was under pressure after the collapse of major exchange FTX. In fact, Bitcoin's price did fall dramatically. After reaching an all-time high of nearly $69,000 in November 2021, Bitcoin's value decreased by around 75%. By the end of December 2022, $BTC was trading at just under $17,000.

In the current cycle, the largest correction so far has been around 23% from the all-time highs near $69,000 set in November 2021. While painful for recent buyers, this volatility is actually relatively tame compared to Bitcoin's historical norms during bull markets.
By overlaying Bitcoin's price action with technical indicators like moving averages and retracement levels, some potential areas of support can be identified in the $52,000 to $56,000 range. A decline into this zone would represent a 30-35% correction from the highs - still within the expected parameters of a normal bull cycle correction.
However, a sustained break below this area could indicate something more ominous is at play. Several analysts have called for a potential decline to the $40,000 level in that event, which would align with the 50% retracement from the 2021 peak.
Despite the Federal Reserve's decision to keep the federal funds rate in a range of 5.25% to 5.5%, the same level it has held since the central bank's July 2023 meeting, only time will tell if this proves to be yet another bull market correction, or the start of a deeper downturn in crypto prices. But applying some objective analysis from previous cycles can help crypto traders and investors navigate the turbulence and make more informed decisions.
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$TAO 🤑my dear, be always here🤑
TAO, Bittensor, a decentralized machine learning network, has witnessed a significant surge in the value of its token TAO. In the past month after being listed on Binance, it reached an all-time high of over $700. The gains over the last week and month are largely attributable to Bittensor's status and the growing interest in AI, which is attracting investors.

When examining the broader picture, TAO's 30-day average has been well above the 200-day since mid-November, indicating that a correction was needed. Despite these red candles, the coin is still awaiting a potential Bitcoin pump, which could definitely lead to additional spikes in the next few weeks.
TAO's chart reveals a token with considerable momentum at present, following the recent Federal Reserve decision. However, it may have peaked under $400 or could be on the way down for testing other levels while Bitcoin is declining.
In the short term, the decision to hold interest rates steady could have a mixed impact on cryptocurrencies. On one hand, steady interest rates might reduce the appeal of safer investments, potentially driving some investors towards riskier assets like cryptocurrencies. On the other hand, if the market was expecting a rate cut, the decision to hold rates steady could disappoint investors and put downward pressure on crypto prices.
Further evidence comes from the core project itself. Therefore, despite the current correction, the ongoing interest in AI is likely to keep pushing TAO higher in the longer term. As you are aware, the hype for AI remains very strong. Consequently, the prices of AI coins are largely driven by their status as decentralized machine learning networks and the growing interest in AI. To date, Bittensor has yet to produce or roll out a significant AI-based dApp or project. Once its ecosystem starts growing and offering genuine utility, the Bittensor price could rise even higher.
It is believed that TAO could reach $550 in the next few weeks, before topping $700 🤑at some point in the summer. However, for traders concerned about TAO, there are other promising AI projects that appear poised for a surge in the coming months such as( $EFT $RNDR $CTXC ..)🤑🤑
Therefore, if the interest in AI continues to grow, it could offset any negative impact from the Federal Reserve's decision and push TAO and other AI cryptocurrencies higher in the longer term.
Finally, I want to remind you, while the Federal Reserve's decision is an important factor to consider, it is just one of many factors that could impact the price of TAO and other AI coins. As always, You as an investor should conduct YOUR own research and consider YOUR own risk tolerance when making investment decisions, be smart. 😎
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$BTC
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1. Crypto Dips Amid Rate Jitters
Bitcoin$BTC fell 0.8% to $67,372.3 by 01:34 ET on Wednesday, extending its decline from Tuesday's low of $66,000. Traders are cautious ahead of the Federal Reserve's interest rate decision and key inflation data. High rates diminish the appeal of cryptocurrencies, leading to recent market volatility.
2. Futures Muted
U.S. stock futures were largely flat on Wednesday. By 03:38 ET, Dow futures were up 30 points (0.1%), while S&P 500 and Nasdaq 100 futures remained unchanged. The S&P 500 and Nasdaq Composite hit record highs on Tuesday, boosted by Apple shares.
3. Fed Decision Ahead
The Fed is expected to keep interest rates at 5.25%-5.5%. Attention will be on the Fed's "dot plot" projections for future rates and Chair Jerome Powell’s statement. Recent strong job data has decreased expectations of a rate cut in September.
4. CPI Looms Large
The May consumer price index (CPI) report, due shortly before the Fed meeting concludes, could influence the Fed's rate outlook. Analysts predict stable annual inflation but slight monthly deceleration.
5. Chinese Inflation Weaker
China’s consumer prices rose 0.3% year-on-year in May, below expectations. Producer prices fell 1.4% year-on-year, showing signs of industrial recovery.
6. Crude Prices Rise
Crude prices rose on optimism about global demand. U.S. crude futures increased 0.8% to $78.52 per barrel, while Brent climbed 0.6% to $82.41. Reduced U.S. oil inventories and positive demand forecasts from the EIA and OPEC contributed to the gains.
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Fed J Powell speech

The interest rate set by the Federal Reserve (FED) can impact Ethereum (ETH) and other cryptocurrencies through several economic and financial mechanisms:
1. Market Sentiment Impact: When the FED raises interest rates, the cost of borrowing increases, reducing the amount of money circulating in the economy. This often leads investors to shift their funds from high-risk assets like cryptocurrencies to safer assets like bonds or bank deposits. Conversely, when the FED lowers interest rates, money becomes cheaper, potentially boosting investment in higher-risk assets, including ETH.
2. Value of the USD: Higher interest rates typically increase the value of the USD. When the USD strengthens, the price of ETH and other cryptocurrencies (which are often traded against the USD) can decrease because each USD buys more ETH. Conversely, if interest rates are low and the USD weakens, the price of ETH may rise.
3. Inflation and Asset Value: If the FED raises interest rates to combat inflation, this can diminish ETH's appeal as an inflation hedge. Conversely, if interest rates are low and inflation is high, ETH may be seen as a safe haven asset, leading to price increases.
4. Capital Flows and Investment: Low interest rates encourage investors to seek higher yields in emerging markets or non-traditional assets like cryptocurrencies. When interest rates rise, capital may flow back to traditional assets with fixed yields and lower risk.
Conclusion🚀
The FED's interest rates significantly affect the price of ETH and other cryptocurrencies, primarily through impacts on market sentiment, the value of the USD, inflation, and investment flows. However, the cryptocurrency market is also influenced by many other factors such as technology, regulation, and user demand, so it does not rely solely on the FED's interest rates.
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