The global cryptocurrency market faced a significant sell-off on May 2, 2024, with Bitcoin dropping below $58,000.

The sell-off was influenced by the US Federal Reserve's decision to maintain interest rates between 5.25% and 5.5%, promoting a risk-off sentiment.

Bitcoin's value declined by 6% on Wednesday and had already decreased by 16% in April, marking the start of a bear market.

Investors have been withdrawing from cryptocurrencies in anticipation of the Federal Reserve's interest rate decision.

The Federal Open Market Committee is not expected to change interest rates, leading to concerns that rates may not be cut throughout the year.

Alt-coins have also suffered, with some losing nearly 25% of their value in the last week.

Analysts are watching Bitcoin support levels at $55,700 and $51,000-$52,000, with upcoming FOMC announcements and jobs data as potential trend accelerators or reversers.

Despite the cryptocurrency downturn, the broader economy shows strength with 81% of S&P 500 companies beating Q1 earnings expectations.

Analysts believe Bitcoin could potentially surpass $100,000 due to central bank balance sheet expansions.

Ether and other altcoins are also experiencing losses, with projections of continued selling pressure.

Outflows from U.S. spot exchange-traded funds are linked to the cryptocurrency price drops, with a potential correction of -25% to -29% from the $73,000 peak.

Contrasting with Bitcoin, Shiba Inu has seen growth, underscoring the unpredictable and varied dynamics of the cryptocurrency market.