Bitcoin’s Pressure on Crypto Market Intensifies Ahead of FOMC Decision

• The crypto market cap suffered a significant loss, dropping to $1.055 trillion in 24 hours.
• Bitcoin experienced a temporary surge after the release of the May Consumer Price Index.
• Michael Saylor predicts Bitcoin’s market share will nearly double to 80% in the long term.

The upcoming Federal Open Market Committee (FOMC) meeting has the crypto market perplexed. In the last 24 hours, the crypto market cap hit a significant loss of 0.5%, dropping to $1.055 trillion. Bitcoin, however, saw a temporary surge in response to the recent publication of the May Consumer Price Index (CPI), which indicated a decline in inflation.

The dominant cryptocurrency, boasting the largest market capitalization, was valued at $26,008, indicating a minor decrease of less than 0.50% within the hour subsequent to the release of the announcement by the U.S. Bureau of Labor Statistics.

However, Bitcoin’s volatile behavior is exerting downward pressure on the cryptocurrency market at a faster pace compared to other assets. Experts believe this could result in diminished demand in the most risk-sensitive segment of the market spectrum leading up to the FOMC decision.

Moreover, bears suggest that the declines can continue up to $25,700 and possibly even $24,800. Meanwhile, Glassnode reported that the seven-day moving average of Bitcoin‘s hash rate has reached 393.9 EH/s, rendering BTC’s mining difficulty to a potential high of 52.84 trillion.

However, not all share this view. An analysis conducted by Santiment revealed that during this period, whales holding between 100 and 10,000 BTC have managed to accumulate an additional 57,578 BTC.

Additionally, as per TradingView, the current Bitcoin dominance stands at over 49%, marking its highest level since April 2021. This indicates that approximately half of the total value locked in the cryptocurrency market is attributed to Bitcoin.

Subsequently, during an interview with Bloomberg Television on Tuesday, Michael Saylor, the Co-Founder of MicroStrategy, expressed that Bitcoin’s (BTC-USD) market share in the crypto space is poised to nearly double its current levels.

Saylor further argued that over the long term, Bitcoin’s dominance will surge to 80%. He attributed this projection to the anticipated increase in regulatory scrutiny, which is expected to reduce the usage of various altcoins and stablecoins.