Bitcoin ETFs see inflows for the third week, while BTC dominance hits 64%. Despite current trading at $94,450, analysts warn of a possible drop to $92,000. Notably, U.S. ETFs recorded significant net inflows largely from BlackRock, yet several others faced outflows. With market cap slightly down and Ethereum holding steady, the crypto market faces potential volatility ahead.
Bitcoin exchange-traded funds (ETFs) are experiencing quite the uptick in inflows, marking their third straight week of positive movement. This news comes at an interesting time as Bitcoin’s dominance in the market has surged close to 64%. Analysts are keeping a close watch, speculating a possible fall to $92,000 amid current price movements and broader market trends.
Currently, Bitcoin is trading around $94,450. Recent price charts reveal a downward trajectory since early May, hinting that the market might be overheating. Given Bitcoin’s price decline, data from CoinMarketCap indicates that the cryptocurrency’s market share actually increased by 1.9%, climbing to 63.9%, a percentage not reached since early 2021. This suggests that altcoins might be struggling even more than Bitcoin, which could mean less volatility for the leading digital currency.
Meanwhile, the global cryptocurrency market cap took a slight hit, dipping 0.5% to $2.94 trillion. Interestingly, trading volume soared almost 15% to $63.4 billion, showing there’s still considerable activity among traders.
Looking closer at the inflow situation, US-based spot Bitcoin ETFs have delivered strong performances recently. SoSoValue reported that on May 5, net inflows hit a significant $425.5 million, largely thanks to BlackRock’s IBIT fund pulling in $531.2 million. However, five other ETFs noted significant outflows, totalling over $105 million, which raises some eyebrows.
The Ethereum landscape remains somewhat steady, with ETH trading around $1,845 and maintaining a market cap of around $222.72 billion. Trading volumes here did show a healthy $113 million on May 5, but overall investment energy seems flat.
Crypto analyst Jason Pizzino shared his views on Twitter, projecting a potential correction for Bitcoin towards $92,000. His analysis indicates that if Bitcoin drops below this threshold, the market could see a further decline, potentially slipping under the crucial $90,000 mark. On the flip side, crossing the $96,000 line could signal a push past the $100,000 milestone.
Right now, it seems Bitcoin really needs some strong supportive factors, both macroeconomic and microeconomic, to propel itself upward again. Without these catalysts, another price downturn might be on the horizon, putting added pressure on the entire crypto ecosystem. It’s a crucial moment for traders and investors alike, needing to stay informed and vigilant.
