Bitcoin appears to be aligning itself with the perspectives of traditional investors who have entered the digital asset space through the introduction of US exchange-traded funds. Additionally, BTC’s price surged to $64,500 on May 4 due to fresh gains in out-of-hours trading.
Bitcoin experienced a significant surge on Friday following a report that revealed a smaller-than-expected increase in US employment. This news has reignited expectations for interest rate cuts, which, in turn, has increased the appeal of speculative assets.
The rally managed to recover a significant portion of the earlier week’s losses, which were driven by concerns about Federal Reserve officials adopting a more hawkish stance and a decrease in demand for ETFs.
On Friday, Bitcoin saw a substantial 7% increase, reaching a price of $62,937. This upward movement also had a positive impact on other cryptocurrencies, including Ether, Solana, and even meme-based coins like Dogecoin. Bitcoin had experienced a significant decline on May 1, reaching its lowest point in about two months at $56,527.
Investors withdrew a significant amount of money, totaling $564 million, from a group of nearly a dozen US ETFs on Wednesday. This marked the largest outflow of funds since these products were introduced in January. Higher-for-longer interest rates have also negatively impacted other markets, such as equities.
The drop in Bitcoin from its record high of nearly $74,000 reached in March has raised concerns among traders. Some market analysts believe that some traders may perceive risks in the global macro environment that the Fed or general investors have not yet recognized.
Currently, the value of Bitcoin (BTC) stands at $63,571.91. This represents a slight decrease of 0.2% compared to an hour ago, but a notable increase of 2.9% since yesterday. The current value of BTC is 1.0% higher than its value a week ago.
The current global crypto market cap is $2.47 Trillion, with a 2.42% change in the last 24 hours and a significant 100.47% change compared to one year ago. BTC’s market cap stands at $1.25 Trillion, indicating a Bitcoin dominance of 50.63%. Meanwhile, the market cap of Stablecoins stands at $161 Billion, accounting for 6.51% of the total crypto market cap.
The strength seen in the United States employment data gained momentum towards the end of the day, driven by positive signs of recovery in the crypto market, such as the recent inflows into the Grayscale Bitcoin Trust (GBTC) after a gap of almost three months.
According to data from monitoring resource CoinGlass, BTC/USD has seen a 5% increase month-to-date at the time of writing, which is a significant improvement compared to the 15% losses in April.
Despite the impressive performance over the weekend, there were concerns about the overall strength of the market without the participation of traditional financial institutions.
One user expressed two main scenarios they are watching for Bitcoin at the moment. The green path, which is ideal, involves holding the local highs and continuing up to the major resistance. This would allow them to short several altcoins. The red path, which is not ideal, involves failing to hold the reclaim, seeing an early breakdown, and not meeting ideal short zones for most altcoins they are eyeing up.
