Key Points
- Bitcoin’s market dominance increases as its price consolidates below $95,000.
- Spot Bitcoin ETFs see strong inflows for the third week in a row.
Bitcoin’s value is currently consolidating under the $95,000 mark, while its market dominance is on a steady rise.
The leading cryptocurrency is trading around $94,450, with a notable decline observed between May 2nd and 5th, indicating a possibly overheated market.
Bitcoin’s Increasing Market Dominance
Data from CoinMarketCap shows that Bitcoin’s price drop coincided with a 1.9% increase in its market dominance, reaching 63.9% – a level not seen since early January 2021.
This trend might indicate that altcoins are experiencing deeper drops than Bitcoin, suggesting lower price volatility for the leading digital asset.
Global crypto market cap experienced a slight 0.5% decrease, falling to $2.94 trillion. However, the total daily trading volume saw a near 15% increase, reaching $63.4 billion.
Spot Bitcoin ETFs’ Strong Inflows
US-based spot Bitcoin exchange-traded funds began their third consecutive week with robust inflows.
Data from SoSoValue reveals that spot Bitcoin ETFs recorded a net inflow of $425.5 million on May 5, with the sole source being BlackRock’s IBIT fund, contributing $531.2 million.
Five out of the 12 Bitcoin ETFs – FBTC, GBTC, ARKB, BITB, and EZBC – recorded over $105 million in outflows.
Despite a trading volume of $113 million on May 5, Ethereum-based investment products remained neutral.
Jason Pizzino, a macro and crypto analyst, suggests a further correction to $92,000 based on his analysis of Bitcoin’s price movements.
In a post on May 6, Pizzino stated that Bitcoin is indicating a local top. If Bitcoin drops below $92,000, the next target could be under the psychological $90,000 mark.
Conversely, a rise above $96,000 could indicate a potential break of the $100,000 barrier.
Currently, Bitcoin requires both macro and micro catalysts to gain bullish momentum. Otherwise, a price correction is likely to shake the crypto market once again.
