The market is boiling right now: coins jumped 20% in a single day, Bitcoin climbed back above 104,000, and Ethereum crossed 2,300. But behind the hype, there's a gradual distribution of whales, and on-chain indicators hint that we may be nearing the end of an uptrend, not the beginning of a new one.
The market is moving because of the macro context and US decisions.
Federal Reserve Chairman Jerome Powell held interest rates steady yesterday. This decision was expected, but what really moved the market were the signals he gave that monetary policy could be eased if inflation stabilizes. This opened the door to new liquidity flows into the market—particularly from institutions.
Performance of popular currencies now
Bitcoin is currently around $103,000, leading the market with a dominance of 62.8%, its highest level in more than two years.
Ethereum exploded again, jumping about 20% in the last 24 hours and remaining at around $2,330.
BNB maintains stability around $630 despite regulatory pressure in Asia.
Dogecoin jumped more than 12% and reached $0.20, driven by tweets and speculator enthusiasm.
Cardano, Avalanche, and Ave also made gains of 9-11%, giving the market a strong boost.
Institutional liquidity is on fire
Imagine that Bitcoin Spot ETFs alone attracted more than $4 billion in the last three weeks, and the crypto market cap increased by more than 10% in April alone. There's huge appetite right now from major investors, especially after confirmation that the Federal Reserve won't raise interest rates anytime soon.
Bitcoin's dominance is increasing
Bitcoin's dominance reached 64.9% at the beginning of May, confirming that large investors see it as a safe haven compared to altcoins. This trend is affecting portfolio allocation and shifting the primary focus to BTC.
Stablecoins is a very important indicator.
The market cap of stablecoins is now approaching $232 billion. What's even more striking is that USDC has begun to draw liquidity from USDT, due to increased regulation and scrutiny that makes people feel more secure. This change directly impacts market flows.
Is the market distributing or is it still collecting?
Indicators like the 1-Year HODL Wave indicate that old portfolios are beginning to move, meaning there's hidden liquidity from whales even as prices rise. This is a dangerous sign if institutional liquidity dries up. We must closely monitor this, as it's similar to what happened in late 2017 and 2021 before the correction.
Derivatives and Leverage
Approximately $400 million in short positions on Bitcoin futures were liquidated this week. This confirms the market's temporary bullishness, but at the same time, it raises the risk for late-stage speculators.
The market is hot but needs focus
The market is currently supported by strong liquidity, with a calm but not aggressive distribution from whales. Altcoins are moving, but the market is always following Bitcoin. Blockchain indicators suggest we're approaching a correction phase if no new liquidity enters.
