Bitcoin dominance is now in the “final countdown” before a potential collapse, according to analyst Rekt Capital, who warned this week that “the road to 71% continues… but it is the Final Countdown.”
The timing couldn’t be sharper. Bitcoin enters the first full week of May holding onto $93,500—its yearly open—just as the U.S. Federal Reserve gears up for a policy decision that could send ripples through crypto and equity markets.
“All eyes are on Fed Chair Powell this week after recent pressure from Trump to cut rates,” The Kobeissi Letter said on X.
Fed Decision Looms Over Bitcoin Price
The Federal Open Market Committee meets May 7. While traders don’t expect a surprise, the language Powell uses will matter. Material Indicators said it best: Powell’s words alone “will move markets.” Meanwhile, CME’s FedWatch Tool shows just a 5.2% chance of a cut.
Traders are already staking out levels. Michaël van de Poppe told followers that if Bitcoin dips ahead of the decision, “then the go-to zone for entries is between $91.5–92.5K.”
Bitcoin Holds Support as Liquidity Builds
Despite brief weekend pressure, Bitcoin held $93,500. According to CoinGlass, the largest cluster of ask liquidity now sits near $96,420.
CrypNuevo mapped out two bullish setups—either a break past $98K triggering short-term liquidations, or a rebound from a key moving average.
Altcoins Watch as Bitcoin Dominance Peaks
Bitcoin dominance just hit 65%, its highest since early 2021. But Rekt Capital says this could be the peak. He noted previous dominance tops occurred near 71%, often right before altcoins took over.
Fahrer, co-founder of Apollo, disagrees. He said institutional holders like BlackRock (BLK) and Strategy (MSTR) aren’t rotating into altcoins, adding, “they just hold it.”
Sentiment Swings Back Toward FOMO
According to Santiment, social media has flipped. In April, users were calling for prices between $10K–$69K. Now? They’re predicting $100K–$159K.
“This was the ideal buy time,” Santiment wrote. With sentiment heating up and the Fed in focus, Bitcoin’s next move could be anything but quiet.
At the time of writing, Bitcoin is sitting at $94,137.
