Crypto investors have experienced the impact of the recent Federal Reserve meeting, which has led to increased market fluctuations. However, there are signs of recovery in the market. The $67,000 threshold has not yet been surpassed, and altcoins have struggled to regain their losses. So, what is the current situation and what can investors expect moving forward? Both Bitcoin (BTC) and altcoins may provide some insights.
Current Crypto Status:
The total market value of cryptocurrencies has once again exceeded $2.35 trillion. BTC’s market dominance has risen to 53.4%, although its trading volume has decreased to $50 billion. We have entered a phase where investors are more cautious, unlike the days when $100 billion was easily surpassed on a daily basis. Many experts believe that this consolidation phase could continue for several months.
This lack of enthusiasm in the market is not unusual in the context of past cycles. After the halving event, we often experience these less exciting periods, followed by a surge towards historical highs. If the real bottom has been reached at $56,552, we might see the bulls preparing for a rally while remaining below the $67,000 mark for some time.
Bitcoin and Altcoins:
Among the top 100 cryptocurrencies by market value, the most notable altcoins that have seen losses despite BTC’s rise are CORE and SUI, with weekly losses of 13%. PYTH, CFX, and NEO also experienced declines of nearly 10%. On the other hand, HNT, WIF, RNDR, PEPE, W, and WLD appear less affected by the drop. Compared to last week, six altcoins have gained between 12% and 22% today.
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 marked the first net entry day since April 24, a rare occurrence for most ETFs.
According to data from May 3, it seems that ETF channel investors have returned to the markets. With the stock market set to open on Monday, we could see further increases in crypto volumes in ETF data. While predicting the future is impossible, the positive close on the last trading day in the ETF channel could lead to increased appetite driven by expectations in the coming hours.
Disclaimer:
Please note that the information provided in this article should not be considered as investment advice. Investors should be aware of the high volatility and associated risks of cryptocurrencies and conduct their own research.
