Bitcoin's recent price action has left investors on edge as the asset struggles to maintain support above the $100,000 mark. Over the past week, the crypto king has traded sideways, signaling waning demand and growing uncertainty across the market.
Bitcoin Dominance Drops Amid Market Jitters
One of the key concerns driving investor anxiety is the sharp drop in Bitcoin’s market dominance. After peaking at 65.38% just a week ago, dominance has since plunged to a low of 61.87%. This steep decline suggests a liquidity shift away from Bitcoin and into altcoins, weakening the bullish momentum that previously powered BTC past $100,000.
ETF Outflows Highlight Growing Institutional Caution
Institutional interest in Bitcoin also appears to be cooling off. Spot Bitcoin ETFs saw collective outflows of $86.2 million between Monday and Tuesday. While this figure isn’t massive, it may reflect profit-taking or hedging behavior as investors brace for potential downside.
The drop in ETF demand is a sign that institutional players, who heavily contributed to Bitcoin’s rally earlier this month, may be stepping back—or at least becoming more cautious.
Whales Step In to Defend $100K Level
Interestingly, not all big-money players are retreating. Data from Coinglass shows that whales added roughly $30.24 million in net spot inflows over the last 24 hours. This suggests that some are actively defending the $100,000 level, potentially buying the dip or betting on a rebound.
Despite rising sell pressure, whales may be holding the line in anticipation of renewed bullish sentiment—or simply waiting for retail investors to reenter the market.
Retail Still Absent—but FOMO Could Flip the Script
Retail participation remains notably low, particularly in retail-heavy markets like South Korea. Analysts believe this lack of retail interest could be why whales are hesitant to take profits; retail often provides the exit liquidity whales need to offload positions.
However, with sentiment gradually tilting toward greed, a surge in retail-driven FOMO could ignite the next leg up. If Bitcoin reclaims upward momentum, it could enter a new price discovery phase, drawing in more retail traders.
Outlook: Bullish Bias, But Risks Remain
Bitcoin exchange flows are currently balanced, with inflows slightly outpacing outflows—a sign of indecision. While macroeconomic conditions have improved, giving risk assets a boost, traders should stay alert. Whales and institutions may continue to support prices, but any sudden shift in sentiment or global conditions could trigger a sell-off.
For now, all eyes are on the $100,000 level. If Bitcoin holds, the second half of May could see renewed bullish energy. But as always in crypto, the unexpected is never far behind.
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