In the midst of uncertainties surrounding Federal Reserve rate adjustments and global economic conditions, public interest in alternative cryptocurrencies, known as altcoins, has been dwindling, indicating potential corrections akin to those seen in 2019.

The overall cryptocurrency market has fallen under the control of bearish sentiment, with Bitcoin Exchange-Traded Funds (ETFs) witnessing significant outflows amounting to $162 million just a day before the Federal Open Market Committee (FOMC) meeting. The possibility of higher inflation rates could potentially eliminate the likelihood of any rate cuts by the Federal Reserve this year. Over the past 24 hours, the price of Bitcoin has dropped by 5%, slipping below the $60,000 mark, while altcoins are experiencing even more pronounced corrections.

Deeper Corrections Expected for Altcoins

Crypto analyst Benjamin Cowen recently shared insights indicating a potential relationship between altcoin-to-Bitcoin (ALT/BTC) pairs and imminent rate adjustments. Cowen drew comparisons with previous market cycles, noting the capitulation of ALT/BTC pairs just before rate cuts. He suggested a historical pattern might repeat itself, hinting at a further 40% decline in ALT/BTC pairs in the upcoming months.

Despite temporary counter-trends, Cowen maintained his viewpoint, emphasizing the ongoing challenges faced by altcoins amidst declining public interest. He highlighted a lack of investor concern, drawing parallels to the situation observed in 2019. During that period, social interest also decreased before rate adjustments, and ALT/BTC pairs reached their lowest point when the Federal Reserve altered its stance.

May Poses Challenges for Bitcoin and Cryptocurrency

The price of Bitcoin has continued its decline, currently trading around $59,500. April marked the worst-performing month for Bitcoin since the FTX collapse in November 2022. Market analysts are predicting further downward movement for the Bitcoin price, potentially reaching $52,000 if it falls below $58,000, its 100-day Exponential Moving Average (EMA).

Market analyst Patric H. foresees a turbulent emotional journey for Bitcoin and altcoin investors in May. He anticipates a final period of market shake-out within the next 2-6 weeks before a possible breakout occurs. Patric noted the overly optimistic sentiment reflected in the Fear and Greed Index, leaning towards the "Greedy" side.

Patric added: "The market is losing momentum as we witness ongoing outflows from Bitcoin ETFs. Combined with the lackluster performance of the HK ETF, which only recorded $11 million in trading volume instead of the expected $300 million, investor expectations are falling short."

With expectations mounting for the Federal Reserve's interest rate announcement scheduled for Wednesday, market anxiety has surged, leading to a rise in the dollar index as investors seek safety. These developments have contributed to the downturn observed in the cryptocurrency market, creating a sense of uncertainty and a lack of clear direction until the interest rate decision is revealed.