Cryptocurrency investors have been affected by the recent Federal Reserve meeting, which has led to increased market fluctuations. However, the market is now recovering. Despite this, the $67,000 threshold has not been surpassed, and altcoins are struggling to regain their losses. So, what is the current situation and what can investors expect? Both Bitcoin (BTC) and altcoins may provide some insights.
Current Crypto Status
The total market value of cryptocurrencies has once again surpassed $2.35 trillion. Bitcoin’s market dominance has increased to 53.4%, but its trading volume has decreased to $50 billion. We have moved from a time when surpassing $100 billion daily was easy to a more cautious period for investors. Many experts believe that this consolidation phase could continue for several months.
The lack of enthusiasm in the market is not unusual during these cycles. After the halving event, we often experience these less favorable periods, followed by aiming for new historical highs. If we have indeed reached the real bottom at $56,552, we could see bulls preparing for a rally while remaining below $67,000 for some time.
Bitcoin and Altcoins
Among the top 100 cryptocurrencies by market value, the most noteworthy altcoins include CORE and SUI. Despite the rise of Bitcoin, they have experienced weekly losses of 13%. PYTH, CFX, and NEO have also seen declines of nearly 10%. However, HNT, WIF, RNDR, PEPE, W, and WLD seem less affected by the drop. Additionally, six altcoins have gained between 12% and 22% today compared to last week.
On the last trading day of the week, ETFs showed promise. GBTC saw a net entry of $63 million for the first time in a while, raising hopes for Monday. This is the first net entry day since April 24, which is uncommon for most ETFs.
Based on data from May 3, it appears that ETF channel investors have returned to the markets. With the stock market opening on Monday, we may 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 and expectations in the coming hours.
Disclaimer:
The information provided in this article should not be considered as investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry risks, and should conduct their own research.