Bitcoin Struggles to Maintain Support Level Above $27K amid Weakness in Altcoins and US Stock Market Rebound

Bitcoin dominance has regained 51 percent of the total crypto market valuation despite the recent struggle to rally beyond $28k amid short-term market uncertainty caused by puzzles of economic geopolitics.

Amidst a global shift in economic outlook triggered by the BRICS alliance, Bitcoin (BTC) has been identified as a crucial instrument to hedge against high inflation. However, the Bitcoin price has struggled to rally beyond $28k in the past few days as the mother coin retested around $26.9k in the past 24 hours. According to the latest market data provided through Coingecko and Tradingview, Bitcoin price had dropped about 4 percent since Monday to trade around $27k during the early Asian market on Wednesday.

Nonetheless, the top coin has been consolidating between $31.8k and $24.8k in April this year, despite the high demand from institutional investors. For instance, more than ten fund managers in the United States have applied with the Securities and Exchanges Commission (SEC) to offer spot Bitcoin ETFs. With the recent victory by Grayscale Investments over the SEC on its bid to convert the GBTC to a spot Bitcoin ETF, experts believe the agency could approve all the applications in six months to avoid giving any applicant a step ahead over the others.

Bitcoin Dominance Reigns over Altcoins

As Bitcoin price continued to range in the higher time frames, most of the altcoins edged lower with high risks of further capitulation. According to market aggregate data provided by Coinglass, most of the long traders were liquidated in the crypto industry. Meanwhile, Bitcoin dominance has managed to rebound from recent lows of about 49 percent to around 51 percent on Wednesday. This follows notable altcoin unlocks scheduled in the coming days including Aptos (APT) and ApeCoin (APE).

For instance, the Aptos holders are expected to unlock 4.54 million APT tokens worth approximately $21.9 million later today. As a result, about 18 percent of Aptos tokens have been unlocked. In five days, about 15.6 million APE tokens worth about $16.01 million will be unlocked, hence 54 percent of the total supply is already unlocked.

A notable inflation of the altcoin market tends to weigh heavily on the underlying market value especially now that uncertainty has prevailed.

Stock Market Gains Bullish Momentum

Amid heightened demand for generative artificial intelligence (AI) products, the US stock indexes edged higher in the past 24 hours. For instance, the Dow Jones Industrial Average gained 0.4 percent to trade around 33,739.30 on Wednesday. Similarly, the Nasdaq Composite Index and the S&P 500 Index gained about 0.5 percent to trade around 13,562.84 and 4,358.24 respectively. Meanwhile, both crypto and stock traders are expecting higher volatility amid the US CPI, PPI, and FOMC meeting minutes.

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Steve Muchoki

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