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- Bitcoin consolidates near $95,000, with a market cap approaching $3 trillion.
- Spot bitcoin ETFs see a $56 million outflow after eight days of heavy inflows.
- Analysts expect a strong move if the market breaks the current range, driven by macro trends.
The cryptocurrency market continues to tread cautiously. With the overall market capitalization approaching $3 trillion, it shows signs of consolidation rather than momentum. Bitcoin stands firm at around $95,000, keeping traders in suspense.
Other large digital assets such as Ether, BNB, and Solana moved little in recent days. XRP and Cardano declined slightly. The hardest hit was Dogecoin, decreasing by 3% in Thursday’s trading session.
This period of flatness has now spanned close to a week. Prices have drifted in a narrow range, rising and falling little. Some hold that this type of flat activity usually leads to big movements. Others interpret this as the lull before a possible bounce. The market has as of now failed to cross its 200-day moving average, now at about $3.01 trillion. Pushing past that would bring about the possibility of reaching $3.5 trillion, experts predict.
Bitcoin ETF Outflows Signal Sentiment Shift
Spot bitcoin ETFs have turned into a hot commodity among investors. During the last eight days, these funds received about $3 billion in capital. On Wednesday, that reversed. Investors withdrew $56 million. While it’s not a lot of money, it’s a sign of a turn in sentiment.
Yet there is some strength lurking underneath. Bitcoin has fluctuated between $93,000 and $95,000 since April 25. The tight range indicates pent-up pressure. If that range is broken, it could unleash a big price move. History confirms this notion.
Past instances when bitcoin funding rates became negative saw later price surges. During those periods, large investors, or whales, built up positions in the background. Recent indications reveal a similar phenomenon. The average funding rate of Bitcoin has remained in the negative range for days now. Such an unusual formation contributes to speculation about an upcoming breakout.
Economic Signals Could Spark Crypto Move
As cryptotraders look at charts, there is an understated, though strong, influence from global politics. Former President Donald Trump’s tariff measures still create worries. He recently acknowledged that this trade initiative is accompanied by public doubt and political risk.
Regardless of that, he still believes in agreements with countries such as South Korea, Japan, and India. The negotiation with China continues as well. This context impacts every financial market, and cryptocurrencies are included. The participants hold back, anxiously awaiting developments in other economic indices.
Friday’s employment report can be just such an indication. The report could be strong enough to increase confidence, sending Bitcoin and other cryptos higher. The cryptos remain idle at this moment, but there is pressure building. Everyone still keeps their focus aimed at Bitcoin as it pushes the boundaries of its range.
Related Reading: Bitcoin’s Price Surge: The End of Halving Cycles and the Rise of Liquidity
