Crypto investors have been affected by the recent Federal Reserve meeting, leading to increased market volatility. However, the market is showing signs of recovery, although it has not yet surpassed the $67,000 threshold. Altcoins, on the other hand, have struggled to regain their losses. So, what is the current situation and what can investors expect? By analyzing BTC and altcoin trends, we may find some clues for the future.
Current Crypto Status
The total market value of cryptocurrencies has once again reached over $2.35 trillion. Bitcoin’s market dominance has increased to 53.4%, while its trading volume has decreased to $50 billion. We have transitioned from a time when daily trading volumes easily exceeded $100 billion to a more cautious investor environment. Many experts believe that this consolidation phase could continue for several months.
This lack of enthusiasm in the market is not unusual in past cycles. After a halving event, we often experience these less favorable periods before aiming for new historical highs. If we have indeed reached the bottom at $56,552, we may soon witness a bullish rally while lingering below the $67,000 mark.
Bitcoin and Altcoins
Among the top 100 cryptocurrencies by market value, two notable altcoins, CORE and SUI, have seen a weekly loss of 13% despite Bitcoin’s rise. Other altcoins such as PYTH, CFX, and NEO have also experienced around a 10% decline. However, HNT, WIF, RNDR, PEPE, W, and WLD seem to be less affected by the drop. In fact, six altcoins have gained between 12% and 22% compared to last week.
In terms of ETFs, the last trading day of the week showed promise. GBTC saw a net entry of $63 million for the first time in a while, raising hopes for Monday. This is a significant occurrence, as it has been uncommon for most ETFs to experience net entry days since April 24.
According to data from May 3, it seems that ETF channel investors have returned to the crypto markets. With the stock market opening on Monday, we may see further increases in crypto volumes through ETFs. While predicting the future is impossible, the positive closing of the last trading day in the ETF channel could lead to increased appetite and expectations in the coming hours.
Disclaimer:
This article does not provide investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and should conduct their own research.
