Short-Term Weakness Amid Market Caution<\/h2>\n
The recent correction in Bitcoin price<\/a> has coincided with growing uncertainty ahead of the U.S. Federal Reserve\u2019s policy announcement on May 7<\/a>.<\/p>\n While CME Group\u2019s FedWatch Tool indicates only a slight chance of a rate cut, crypto markets are expected to remain volatile in the short term.<\/p>\n Despite the recent dip, Bitcoin is still trading above its 20-day Exponential Moving Average (EMA), currently near $99,630<\/b>, with the Relative Strength Index (RSI) in a positive zone\u2014signaling that buyers continue to have the upper hand.<\/p>\n Analysts warn, however, that if BTC fails to rebound from its current levels and falls below the 50-day Simple Moving Average (SMA) around $86,682, the correction could deepen. Yet, if the bulls hold support above $95,000, the next target remains clear: the psychological $100,000 barrier.<\/p>\n Despite the price volatility, institutional appetite for Bitcoin continues to surge. Between April 22 and May 2, Bitcoin spot ETFs<\/a> saw inflows of $4.5 billion, while open interest in Bitcoin futures soared 21% since March, totaling 669,090 BTC, according to CoinGlass.<\/p>\n Notably, the Chicago Mercantile Exchange (CME) now holds over $13.5 billion in open interest, reinforcing Bitcoin\u2019s role in institutional portfolios.<\/p>\n Furthermore, Bitcoin’s market dominance has climbed to 70%, the highest since January 2021, even amid a flurry of new token launches like SUI<\/a>, TON, TAO<\/a>, and TRUMP<\/a>.<\/p>\n This dominance underscores a strong investor preference for Bitcoin over riskier altcoins, especially in an uncertain macroeconomic environment.<\/p>\n Despite solid fundamentals, Bitcoin’s ascent toward $100,000 is not without hurdles. Investor confidence has been tempered by the lack of progress on the U.S. Strategic Bitcoin Reserve Bill, announced in March.<\/p>\n To date, there\u2019s been no clarity on government Bitcoin holdings or purchase plans, with similar efforts at the state level, such as in Arizona, also stalling.<\/p>\n Global tensions, particularly surrounding the U.S.\u2014China trade relations, continue to suppress risk appetite. While Bitcoin has long been touted as a hedge against traditional markets, recent performance suggests otherwise.<\/p>\n Over the past three months, gold prices have risen 16%, while Bitcoin dropped 5%, and the S&P 500 declined 6.5%, prompting questions about Bitcoin\u2019s safe-haven status.<\/p>\n One of the most bullish signals for Bitcoin\u2019s long-term trajectory comes from Strategy (formerly MicroStrategy), led by Michael Saylor.<\/p>\n On May 5, the company announced the acquisition of 1,895 BTC, followed by an SEC filing revealing a total purchase of 6,556 BTC between April 28 and May 4 at an average price of $95,167.<\/p>\n This brings Strategy\u2019s total holdings to 555,450 BTC, valued at over $38 billion, with an average purchase price of $68,550 per coin.<\/p>\n To support these purchases, Strategy raised $128.5 million via its at-the-market (ATM) program and an additional $51.8 million through preferred share sales, maximizing its previous $21 billion ATM offering.<\/p>\n Looking ahead, the company unveiled its ambitious 42\/42 Plan, a roadmap to raise $84 billion over two years, split equally between equity and debt, exclusively to acquire more BTC.<\/p>\n Despite posting five consecutive quarterly losses, investor sentiment toward Strategy remains optimistic due to its BTC-heavy balance sheet, which now represents nearly 3% of Bitcoin’s total supply.<\/p>\n While Bitcoin consolidates, several altcoins are showing bullish patterns:<\/p>\n 1. Hyperliquid (HYPE)<\/b> is testing resistance at $21.50, with strong support from a rising 20-day EMA and near-overbought RSI.<\/p>\n<\/p>\n
Institutional Inflows and Dominance Signal Strength<\/h2>\n
Macro Uncertainty and Policy Gaps Create Headwinds<\/h2>\n
Strategy\u2019s Bold Bet: Doubling Down on Bitcoin<\/h2>\n
Altcoins Show Isolated Strength Amid Bitcoin Consolidation<\/h2>\n