The market isn't experiencing the violent movements we're used to because there's a simmering situation, and if you're focused, you'll feel that change is happening beneath the surface and behind the scenes.
What is Bitcoin doing?
Bitcoin this week was like a wave going up and down. It rose above $106,000 and then dropped back below $102,000! What does this mean? It means there is high volatility, and the market isn't stable. This movement involves a significant struggle between buying coming from institutions and the natural correction that happens after the crazy rise we saw in April. And be aware, Moody's downgraded America's debt rating, which made many turn to Bitcoin as a hedge. We saw a jump and then a retraction, meaning the market is sensing fear from the dollar.
What about Ethereum?
Ethereum on the other hand isn't quiet, saying I'm here too and there's a nice and big rise happening every now and then due to a new upgrade called Pectra... which makes the network faster, cheaper, and more efficient. However, despite this, Ethereum isn't finding the same momentum that Bitcoin has. Investors are still not entering with full force, which could turn the index.
Is there an Altseason?
The question on everyone's lips is whether this is the time for alternative currencies. The data shows that Bitcoin's dominance in the market has dropped to 63.8%. The Altcoin Season Index has risen from 23 to 36, which is a significant number in just one week. What does this mean? It means the market is starting to focus on other currencies like Sol, Avalanche, MATIC, XRP, ARB, RNDR, AVAX, and LDO, especially since some major exchanges have started adding new derivatives and contracts on them.
So what is moving the market right now?
There's a new law in America called GENIUS, and if passed, it will regulate the stablecoin market like USDC and others. This could be a big step in regulating the market and make institutions feel safer. Additionally, institutions are starting to pump money back into Bitcoin after a period of stagnation. People like "Scaramucci" expect Bitcoin to reach $200,000 before the end of 2025.
We are at a pivotal stage
The market isn't asleep, but it's preparing for something big. The movement isn't just speculation; it's a phase where cards are being redistributed. Those who understand will know how to benefit. If you're a trader, investor, or even thinking about entering the market now is the time for observation and analysis. Keep your movements calculated, have a clear plan, and always set stop losses.
