Crypto Daybook Americas: Bitcoin Dips, but ETF Inflows, Fed Week Keep Bulls Interested | Breaking Crypto News & Blockchain Updates

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By Omkar Godbole (All times ET unless indicated otherwise)

The outlook for bitcoin (BTC) looks bullish even after the largest cryptocurrency pulled back to $95,000 from Friday's highs above $98,000 and the total crypto market capitalization dropped under $3 trillion

Among the signals, U.S.-listed spot bitcoin ETFs are rapidly absorbing supply. Last week, the 11 ETFs registered a cumulative net inflow of $1.8 billion, equating to over 18,500 BTC, six times more than the 3,150 BTC mined, according to data sourcesFarside InvestorsandHODL15Capital. (SeeChart of the Day)

On-chain activity has also picked up, suggesting a bullish outlook. According to data source IntoTheBlock, the number of active BTC addresses topped 800,000 on Sunday, "While it is still far from its highs, the rebound signals a clear pickup in on-chain engagement; often a sign of renewed market demand," the firmsaidon X.

As forDeFi, the number of on-chain transactions involving wrapped bitcoin (WBTC) continues to rise,having doubled since January, indicating investor interest in bitcoin-backed decentralized finance.

Still, long-term holdersmay step uptheir selling as the price nears $100,000, potentially slowing rate of increase, analysis from Glassnode shows.

In ether's (ETH) case, data from CryptoQuant show that the number of ETH held by the so-called accumulation addressesincreased by 22%to 19.04 million ETH in two months. Ethereum is set to implement thePectra upgradeon Wednesday to boost scalability, usability and validator efficiency, doubling the blob data capacity per block and lowering the costs for layer-2 protocols.

On the macro front, the Federal Reserve interest-rate decision is due this Wednesday. According to ING, the near-term inflation concerns, highlighted by survey data, limit the Fed's ability to ease and the central bank is likely to push back against the calls for rate cuts. The bank, however, said that the recent softening of the GDP suggests scope for easing in the second half.

"Volatility is coming,"PowerTrade said, pointing to the Fed decision, U.S. ISM services PMI and the Bank of England rate decision as catalysts this week. Stay alert!

CoinDesk's Consensus is taking place inToronto on May 14-16.Use code DAYBOOK and save 15% on passes.

By Shaurya Malwa

Spot BTC ETFs:

Spot ETH ETFs

Source:Farside Investors

Francisco Rodrigues,Siamak Masnavicontributed reporting.

Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team based in Mumbai, holds a masters degree in Finance and a Chartered Market Technician (CMT) member. Omkar previously worked at FXStreet, writing research on currency markets and as fundamental analyst at currency and commodities desk at Mumbai-based brokerage houses. Omkar holds small amounts of bitcoin, ether, BitTorrent, tron and dot.

Shaurya is the Co-Leader of the CoinDesk tokens and data team in Asia with a focus on crypto derivatives, DeFi, market microstructure, and protocol analysis.Shaurya holds over $1,000 in BTC, ETH, SOL, AVAX, SUSHI, CRV, NEAR, YFI, YFII, SHIB, DOGE, USDT, USDC, BNB, MANA, MLN, LINK, XMR, ALGO, VET, CAKE, AAVE, COMP, ROOK, TRX, SNX, RUNE, FTM, ZIL, KSM, ENJ, CKB, JOE, GHST, PERP, BTRFLY, OHM, BANANA, ROME, BURGER, SPIRIT, and ORCA.He provides over $1,000 to liquidity pools on Compound, Curve, SushiSwap, PancakeSwap, BurgerSwap, Orca, AnySwap, SpiritSwap, Rook Protocol, Yearn Finance, Synthetix, Harvest, Redacted Cartel, OlympusDAO, Rome, Trader Joe, and SUN.

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