Bitcoin Faces Regulatory Doubts and Declining Demand Ahead of Fed Meeting
As the crypto market anticipates the Federal Reserve's rate decision, doubts have resurfaced regarding U.S. crypto regulation. Senate Democrats are reportedly hesitant to advance stablecoin legislation due to President Trump's involvement in crypto ventures.
Key points include:
- Renewed regulatory uncertainty may impact investor sentiment.
- Signs of weakening Bitcoin demand from U.S. investors noted by CryptoQuant.
- U.S.-listed spot Bitcoin ETFs experienced three days of net inflows.
- CFTC plans to observe tokenization pilot programs for technology evaluation.
- Potential macroeconomic pressures on the U.S. dollar could benefit crypto investments.
What to Watch
- May 6: Casper Network's mainnet upgrade.
- May 7: Ethereum's Pectra hard fork activation.
- May 8: Sentencing of Celsius Network founder Alex Mashinsky.
- Macro events include U.S. interest rate decision on May 7.
Market Movements
- Bitcoin (BTC) at $94,160, down 0.19%.
- Ethereum (ETH) at $1,795.10, down 1.09%.
Derivatives Positioning
- XMR, TAO, ADA lead in perpetual futures growth.
- BTC and ETH funding rates indicate weakening bullish momentum.
ETF Flows
Spot BTC ETFs reported:
- Daily net flow: $425.5 million
- Cumulative net flows: $40.63 billion
Technical Analysis
- VIRTUAL token shows potential for a rally based on Fibonacci retracement levels.
Crypto Equities
- Coinbase Global (COIN): closed at $199.40, down 2.7%.
- MARA Holdings (MARA): closed at $13.09, down 9.6%.
Bitcoin Stats
- BTC Dominance: 64.91%
- Hashrate: 908 EH/s
Implied volatility for Bitcoin is at its lowest since July, often a buying signal for seasoned traders.