The crypto market remains a long-term consolidation as its overall market capitalization approaches $3 trillion as analysts see a Bitcoin (BTC) breakout that could drive the market higher.
Bitcoin hovered at nearly $95,00 on Thursday, but Ether (ETH), BNB chain BNB and Solana’s SOL remained stagnant. XRP and Cardano ADA fell 2%, while Dogecoin (Doge) fell 3%.
The Spot Bitcoin Exchange-Traded Funds (ETFS) lost $56 million on Wednesday, beating an eight-day streak that saw nearly $3 billion tides on these US listed products.
Some say the market is generally tied to distance last week, setting courses for what could potentially be a high explosive movement.
“Such long integrations usually accumulate strength for further movements. The next major trigger is likely to be labour market data on Friday,” FXPRO chief market analyst Alex Kupszhūšekūvić told Coindesk in an email.
“For the past five days, the market has been fluctuating in a very narrow range and has been moving towards some shallow decline. Still, it cannot exceed the 200-day moving average, which is currently passing $3.01 trillion. Breakout requires global positivity, but it paves the way for the $3.5 trillion area.
Pat Zhang, Woo X’s research director, reflects emotions. “BTC continues to experience volatility and has formed a combined range of $93,000-95,000 since April 25th, building potential breakout momentum,” he said in a telegram message.
“The average funding rate for BTC has been negative over the past week, which is rare and indicates intense whale activity both inside and outside the exchange,” Zhang added.
Over the past two years, the Bitcoin contract funding rate has only been negative four times, particularly from September 19th to September 22nd and October 20th to October 20th. 27, 2023, August 16th – August 24th, 2024, September 10th – September 17th, 2024.
“Following these periods of negative finance rates, BTC has experienced a strong upward trend, suggesting that whale accumulation could place BTC for potential upward movements,” Zhang said.
Macroeconomic sentiment remains dented as traders see globally the next step President Donald Trump took in the ongoing tariff dispute.
Trump confirmed Wednesday that his customs program had awareness issues, poses serious political risks, but he decided to keep pushing. He said “potential deals” with South Korea, India and Japan are already in place and that deals with China are progressing in his favor.