Bitcoin seems to be aligning with the viewpoints of traditional investors who have entered the digital asset space via the introduction of US exchange-traded funds. Furthermore, the price of BTC surged to $64,500 on May 4 due to fresh gains in out-of-hours trading.
Bitcoin Wild West prices
The largest crypto experienced a surge on Friday following a report that revealed a smaller-than-expected rise in US employment. This news has reignited expectations for interest rate cuts, which in turn has increased the attractiveness of speculative assets.
The rally managed to recover a significant portion of the losses experienced earlier in the week due to increasing worries about the Federal Reserve officials adopting a more hawkish stance and a decrease in demand for the ETFs.
Bitcoin experienced a significant 7% increase on Friday, 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 experienced a significant decline on May 1, reaching its lowest point in approximately two months at $56,527.
On Wednesday, a significant amount of money, totaling $564 million, was withdrawn by investors from a group of nearly a dozen US ETFs. This marked the largest outflow of funds since these products were introduced in January. Higher-for-longer interest rates have also had a negative impact on other markets, such as equities.
The drop in Bitcoin from the record of almost $74,000 reached in March has raised concerns among traders. According to some market analysts, some traders may perceive risks in the global macro environment that the Fed or general investors have not yet recognized.
Bitcoin price movement
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 stands at $2.47 Trillion, with a 2.42% change in the last 24 hours and a significant 100.47% change compared to one year ago. Currently, BTC’s market capi 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 weekend performance, there were concerns about the overall strength of the market without the participation of traditional financial institutions.
One X user said, “Two main scenarios I am looking out for on $BTC at the moment. Green path is ideal. We hold the local highs we broke above and continue up to the major resistance. This will allow me to fill shorts on a number of alts across the board.”
He ended by saying, “Red path is not ideal. We fail to hold this reclaim, see an “early” breakdown, and ideal short zones for most alts I’m eyeing up are not met.”
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