• Bitcoin’s dominance has surged to 65%, but its future remains uncertain as market sentiment shifts toward potential altcoin rallies.
• With the Fed’s rate decision looming and recession fears intensifying, Bitcoin’s price action could face volatility in the coming days.

As Bitcoin continues to capture the attention of both retail and institutional investors, the first full week of May promises several significant developments that could shape its price action. Here’s a breakdown of the top five things to watch for in the coming days:

1. Federal Reserve’s Interest Rate Decision
   This week, all eyes are on the Federal Reserve’s rate decision, with traders closely monitoring any signals from Fed Chair Jerome Powell. Amid growing recession fears and global inflation concerns, the Fed’s stance could significantly impact market sentiment. Bitcoin, often seen as a hedge against inflation, could see volatility depending on whether the Fed raises, cuts, or maintains interest rates.
2. Bitcoin Dominance Hits a 4-Year High
   Bitcoin’s dominance in the crypto market has surged to 65%, the highest it has been in four years. While this dominance is a bullish indicator for Bitcoin, some analysts warn that it may not last long, as altcoins are showing signs of catching up. Investors should prepare for potential shifts in market dynamics as Bitcoin’s dominance may soon face challenges from altcoins like Ethereum.
3. Bitcoin Price Holds Key Support Level
   Bitcoin has been testing its yearly opening at $93,500, and its ability to hold this support level is crucial for maintaining bullish momentum. Despite a dip to $93,350, Bitcoin managed to recover, and many traders are looking for potential upside if the price can stay above this level. A break above $96,420 could signal a continuation of the upward trend.
4. Recession Talks Heat Up
   With growing concerns over a potential recession, Bitcoin is becoming a popular asset for those looking to hedge against economic downturns. The looming threat of stagflation, coupled with jobless claims data due for release on May 8, could stir market volatility. As recession expectations rise, Bitcoin’s role as a “safe haven” is becoming more pronounced, but its performance remains unpredictable in these turbulent times.
5. The Rise of Bitcoin Spot ETFs
   Bitcoin Spot ETFs continue to show strong institutional interest, contributing to Bitcoin’s recent price action. The influx of institutional capital could be a game-changer, especially as major players like BlackRock increase their holdings. However, analysts remain divided on whether Bitcoin’s dominance will hold, as a growing number of traders eye the potential for an “altseason” in the near future.
   

This week’s developments present an intriguing mix of challenges and opportunities for Bitcoin investors. As macroeconomic events unfold and Bitcoin navigates its technical levels, the next few days could be pivotal for the future direction of the market.

Also read: Ethereum Bulls Eye $2,030: Can ETH Break $1,867 Resistance for Next Rally?