Early morning coffee is also known to interfere with your natural morning cortisol production and stress your adrenal glands if consumed in excess. Cortisol continues to diminish after peaking at 8:30 a.m. but increases again around noon. As a result, the hours of 9:30 a.m. to 11:00 a.m. may be the best for getting the most out of your caffeine/coffee usage. Although cortisol levels decline in the afternoon, it’s definitely not the greatest time to get another cup of coffee because it may disrupt your sleep later in the day. Hemp Oil might help you get the most out of your coffee. Both caffeine and stress can raise cortisol levels. Caffeine in excess can cause unfavorable health consequences linked with persistently increased cortisol levels (as in chronic stress). Small to moderate doses of caffeine, on the other hand, might improve your mood and give you a boost.
The FOMC concluded its latest meeting by announcing that it will not cut US interest rates. This decision was largely priced in, and the crypto market hasn’t seriously suffered.
Rate cuts would’ve provided a bullish narrative to juice fresh investment, which the market desperately needs. Bearish signals are growing alongside fears of a US recession.
However, the FOMC made its report to the public and claimed that no rate cuts would be taking place.
“The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. Uncertainty around the economic outlook has increased. The Committee is attentive to the risks to both sides of its dual mandate. In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 4.25% to 4.5%,” it said.
This news more or less fits with the industry’s expectations. Fed Chair Jerome Powell already clearly stated that the FOMC doesn’t plan to cut interest rates.
The industry hoped that rate cuts could provide a bullish narrative, especially while the markets are afraid. For now, it seems like it’ll need to find an optimistic signal somewhere else.
Despite uncertainty from tariffs and bold fiscal policies, officials expect interest rates to drop by another half percentage point by 2025. Since the Fed typically adjusts rates in 0.25% steps, that means we’re likely to see two cuts this year.
Federal Reserves Still Project Two Rate Cuts This Year. Source: CNBC
Rate cuts would be bullish for investors, especially for risk-on assets like cryptoassets. However, this isn’t the Federal Reserve’s only concern. The FOMC alluded to its “dual mandate” when denying rate cuts. In other words, it needs to juggle investor concerns with consumer inflation fears, uncertainty around Trump’s tariffs, and a possible US recession.
If the FOMC were to slash interest rates, it would likely boost US inflation. The most recent CPI report was better than expected, and some in the industry hoped that this would build confidence. Ultimately, the main hopes rested with President Trump, who personally advocated for rate cuts. However, he didn’t make a major intervention.
It’s not all bad, though. The FOMC also announced would slow Quantitative tightening (QT) by reducing the monthly redemption cap on Treasury securities from $25 billion to $5 billion.
Some members of the community were pleased by this news, as slower QT can increase market liquidity. This announcement is at least some consolation for investors.
In any event, this lack of rate cuts was expected and priced in. The FOMC didn’t shock anybody by refusing to cut interest rates, and the market hasn’t been chaotic. A few of the top-performing cryptoassets suffered minor losses, but no substantial drops have materialized.
Crypto Reacts to FOMC Decision. Source: BeInCrypto
The crypto industry has been desperate for a bullish narrative, and some major players are visibly cracking at the seams.
The FOMC, however, did not provide this narrative via rate cuts. Hopefully, crypto will find something else to be optimistic about before a full-blown market correction takes hold.
In a significant development for the cryptocurrency landscape, South Korea’s largest crypto exchange, Bithumb, is reportedly exploring the possibility of…
After a relatively flat April marked by decreased network demand and sideways price action, the second-largest cryptocurrency, Ethereum (ETH), may be positioned for a shift.
ETH holders are optimistic about May. This optimism is fueled by strengthening fundamentals, the anticipated Pectra upgrade, and renewed interest from institutional investors through spot ETH exchange-traded funds (ETFs).
ETH Struggled in April, but May Brings a Glimmer of Hope
In April, on-chain data showed a dip in user activity across the Ethereum network, while broader market stagnation kept ETH trading below key resistance levels.
According to Artemis, during the 30-day period, user demand for Ethereum plummeted, leading to a decline in the number of active addresses, daily transaction count, and consequently, its network fees and revenue.
This and the broader market downturn impacted ETH’s performance, causing the leading altcoin’s price to remain below the $2,000 mark throughout April.
However, in an interview with BeInCrypto, Gabriel Halm, a research analyst at IntoTheBlock, said that ETH’s price could break above the $2,000 price mark in May and stabilize above it.
For Halm, the improved capital inflows into ETH spot ETFs, Ethereum’s dominance in the coin’s decentralized finance (DeFi) vertical, and its upcoming Pectra upgrade could help bring this to fruition.
ETF Inflows, DeFi Dominance, and Pectra: Triple Boost for Ethereum in May
According to SosoValue, monthly net inflows into ETH ETFs totaled $66.25 million in April, signaling a shift in market sentiment compared to the $403.37 million in net outflows recorded in March.
Total Ethereum Spot ETF Net Inflow. Source: SosoValue
This reversal from heavy outflows to modest inflows suggests that investor confidence in the altcoin is gradually returning. It indicates that institutional players may be positioning for a longer-term rebound, especially as Ethereum’s network fundamentals begin to improve, one of which is its climbing dominance in the DeFi sector.
Over 50% of the total value locked (TVL) in DeFi protocols still resides on the Ethereum blockchain. This means that the Layer-1 (L1) remains the preferred settlement layer for various financial applications, including lending, staking, yield farming, and decentralized exchanges.
Therefore, in May, if broader market conditions begin to improve, renewed capital inflows into Ethereum’s DeFi sector could, in turn, drive up demand for ETH and support its price rally.
Moreover, according to Halm, Ethereum’s upcoming Pectra upgrade, set to launch on May 7, 2025, could further aid ETH’s price performance this month. The upgrade promises to enhance the network’s scalability, reduce transaction fees, improve security, and introduce smart account functionality.
These improvements may fuel a surge in user demand throughout May, potentially lifting ETH’s price, provided macroeconomic conditions remain favorable.
ETH’s Growth Hinges on Broader Market Stability
Despite this, the broader economic pressures pose a significant risk to ETH in May. Halm noted that “the upcoming CPI report on May 13th will be particularly important, potentially influencing market sentiment and contributing to this volatility.”
This is because inflation or hawkish signals from the Federal Reserve could worsen the risk-off sentiment in the crypto market, putting pressure on ETH’s price.
Halm also pointed out that ETH’s price remains tightly correlated with US equities. Therefore, if equity markets face renewed stress this month due to inflation fears or rate hike expectations, the altcoin may come under similar pressure.
ETH’s Historical Correlation to S&P 500. Source: IntoTheBlock
“Looking ahead to May, if this high correlation persists, it implies that Ethereum’s vulnerability to market downturns and inflation-related pressures would likely be similar to that of traditional risk assets like those in the S&P 500. A downturn in the general market or increased concerns about inflation impacting equities could therefore negatively affect ETH’s price,” said Gabriel Halm, research analyst at IntoTheBlock,
While a sustained push above $2,000 remains possible, any rally will likely depend on inflation trends, risk sentiment in traditional markets, and how tightly ETH remains tied to equities.
