The price of $BTC has experienced a significant decline from April 30th to May 1st, dropping by approximately 11.5% from $64,700 to $57,000.

Top cryptocurrencies like $SOL and #AVAX✅ have seen a 6% decline since the week began. $DOGE has dropped by 14% in just three days, triggering a downturn in other meme coins such as BONK, WIF, #SHİB , among others.

Yet, experts see signs suggesting BTC might be approaching a bottom, such as reduced worries about the FOMC meeting and the traditional financial markets' rebound.

Let's take a look at the signs indicating that the price of BTC may be bottoming out:

📍FOMC minutes released as predicted

Around 1 AM on May 2nd, the Federal Reserve (FED) decided to maintain the interest rate at 5.25%. A positive signal came from FED Chairman Jerome Powell, who indicated that there would be no possibility of raising interest rates in case of a high return of inflation.

Before this event, #BTC had a bearish trend, breaking the $60,000 support level established over two months. April closed with BTC dropping by 14.88%, its steepest decline since November 2022.

BTC now trades near $57,588, down 5% since May 1st. The recent decline is linked to US stagflation concerns following slowed growth (GDP dropped from 3.4% to 1.6%) and persistent inflation (PCE rose for two consecutive months), dampening hopes of a Fed rate cut.

However, Fed Chairman Powell stated that he hasn't seen any signs of stagflation. This signal helped BTC to recover to around $59,500 in the early morning of May 2nd


📍Traditional financial markets rebound

Following the latest signals from the FOMC minutes, the US stock markets have seen a widespread return to green. The Dow Jones index rose by 0.4%, while the S&P 500 increased by 1.02% and the Nasdaq Composite surged by 2.03%.

This growth has contributed to reversing the downward trend of financial markets in recent days. Bitcoin is not the only asset facing declines, as deteriorating macroeconomic conditions have made investors more cautious about risks.

The Russell 2000 index, monitoring medium and small-cap US-listed firms, fell 8.2% in the last 30 days, wiping out the previous two months' gains. Likewise, WTI oil prices declined by 8.3% since April 5th, when they reached $87.91 per barrel.

On May 1st, a record $560 million exited Spot BTC #ETFs funds, and BlackRock's IBIT fund saw its first negative session since inception. This suggests that BTC's price may have already factored in some of the worst news.

An encouraging signal for the potential end of Bitcoin's price correction comes from traditional markets, buoyed by robust Q1 earnings reports from major companies like Amazon, Microsoft, Google, Netflix, Samsung, Coca-Cola, Morgan Stanley, Citigroup, HSBC, and Barclays.

The stock market recovery may refocus investor attention on risk assets like Bitcoin.