Market Overview
Yesterday, the digital currency market saw a broad pullback as investors digested fresh macroeconomic data and recalibrated their risk appetite. Bitcoin (BTC) slipped 3.1% to close the day near $108,400, while Ethereum (ETH) traded down 2.5% around $2,745. Altcoins followed suit: BNB dipped 2.8%, XRP was off by 3.4%, and Cardano (ADA) retreated 2.9%. Total crypto market capitalization fell to $2.45 trillion, down from $2.53 trillion the prior day.
Crypto Market Sentiment
As of May 29, 2025, the cryptocurrency market sentiment remains in the "Greed" zone, with the CoinMarketCap Fear & Greed Index holding steady at 65 out of 100. This indicates that investors are maintaining a bullish outlook, although caution is advised as markets can shift rapidly.
Key Developments
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Fed Minutes Shake Confidence
The release of the latest Federal Reserve meeting minutes revealed a more hawkish tone than anticipated, with policymakers expressing concern over persistent inflation and a stronger-than-expected labor market. This renewed rate-hike caution weighed on risk assets—cryptocurrencies included—and triggered yesterday’s correction.
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Ethereum ETF Discussions Advance
Wall Street chatter picked up around a potential Ethereum ETF approval, following glowing commentaries from multiple institutional research desks. While not yet confirmed by regulators, the prospect of a regulated ETH investment vehicle drove higher options open interest on leading derivatives platforms. -
On-Chain Upgrades Gain Momentum
Developers working on layer-2 scaling solutions announced successful testnet launches for several Ethereum rollups, boosting optimism around transaction fees and throughput improvements ahead of the upcoming “Dencun” upgrade. Improved network performance continues to underpin Ethereum’s case as the premier smart-contract platform. -
Stablecoin Regulatory Spotlight
U.S. lawmakers held hearings on stablecoin oversight, debating the balance between innovation and investor protection. Proposals ranged from reserve transparency requirements to full banking regulation, with potential implications for issuers like USDT, USDC, and BUSD.
