Americas Crypto Market Outlook: Despite Bitcoin's Dip, ETF Inflows and Fed Week Keep Optimism Alive

By Omkar Godbole (All times ET unless otherwise stated) The outlook for bitcoin remains positive, despite its pullback to $95,000 from Friday's high of over $98,000 and the total cryptocurrency market capitalization falling below $3 trillion. Notably, U.S.-listed spot bitcoin exchange-traded funds (ETFs) are experiencing rapid growth in supply absorption. Last week, the 11 ETFs saw a cumulative net inflow of $1.8 billion, equivalent to over 18,500 BTC - six times the 3,150 BTC mined, according to data from Farside Investors and HODL15Capital. On-chain activity has also increased, indicating a positive outlook. According to IntoTheBlock, the number of active BTC addresses exceeded 800,000 on Sunday. While still below its peak, this rebound signals increased on-chain engagement, often a sign of renewed market demand. In the decentralized finance (DeFi) space, the number of on-chain transactions involving wrapped bitcoin (WBTC) continues to grow, having doubled since January, indicating investor interest in bitcoin-backed DeFi. However, long-term holders may increase their selling activity as the price approaches $100,000, potentially slowing the rate of increase, according to analysis from Glassnode. For ether (ETH), data from CryptoQuant shows that the number of ETH held by accumulation addresses increased by 22% to 19.04 million ETH over two months. Ethereum is set to implement the Pectra upgrade on Wednesday, aiming to boost scalability, usability, and validator efficiency, doubling the blob data capacity per block and reducing costs for layer-2 protocols. On the macro front, the Federal Reserve's interest-rate decision is due this Wednesday. According to ING, near-term inflation concerns limit the Fed's ability to ease, and the central bank is likely to push back against calls for rate cuts. However, the recent softening of GDP suggests scope for easing in the second half. "Volatility is coming," says PowerTrade, citing the Fed decision, U.S. ISM services PMI, and the Bank of England rate decision as catalysts this week. Stay alert. Key Events to Watch: Token Events: Conferences: CoinDesk's Consensus will take place in Toronto on May 14-16. Use code DAYBOOK for 15% off passes. Token Talk by Shaurya Malwa: Derivatives Positioning: Market Movements: Bitcoin Statistics: Technical Analysis: Crypto Equities: ETF Flows: Spot BTC ETFs: Spot ETH ETFs: Source: Farside Investors Overnight Flows: Chart of the Day: While You Were Sleeping: In the Ether