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For over six months, the cryptocurrency markets have experienced persistent declines, with long-awaited surges becoming a distant memory. As of 2022, cryptocurrencies haven’t enjoyed a true summer, and we’ve now reached almost the midpoint of May. Despite the late arrival of good news, the risk appetite of cryptocurrency enthusiasts is on the rise, signaling the possibility of more to come.
Cryptocurrency Resurgence
Bitcoin (BTC) 
$104,666 is finding buyers at $103,000, yet the process related to tariffs remains unpredictable. We are amidst unpredictability, both positively and negatively. While just days ago, Trump remarked that there is no urgency to reach an agreement with China, today he has hinted at a potential weekend meeting with Xi. Tariff reductions are being implemented reciprocally, and a 90-day negotiation period is commencing.
Simultaneously, negotiations with 200 countries continue, with Trump announcing plans to cut drug prices by up to 90% to curb cost of living increases. The decline in oil prices supports inflation, and there is potential for progress towards the 2% inflation goal as the unfavorable sentiment surrounding tariffs diminishes.
However, a concern looms: as we approach the mid-May period, the “sell and go on vacation” cycle begins. Historically, declines starting in these months often extended into July and August. While there are numerous reasons for market ascents, there is also enough narrative material to rationalize such a downturn. This scenario will unfold in time.
The good news is that as long as BTC remains in six-digit territory, sharp declines in altcoins are unlikely. Investor sentiment remains healthy, and TKL highlighted this in today’s assessment:
“The last time U.S. tariffs on China were this high, the S&P 500 was ~200 points lower, 4 Fed rate cuts were expected in 2025, and Wall Street was calling for a recession.
Sentiment is everything.”
Bitcoin (BTC)
Even the most optimistic analysts like Mikybull indicate the possibility of a corrective move for BTC to $93,000. He attributes this to previous failed tests and the need to test significant selling areas. Indeed, BTC failed to sustain above $104,000 and receded below $103,000 following recent announcements. As it maintains the $103,000 level for now, concerns rise, and Mikybull’s foresight becomes noteworthy if a correction occurs.
Scott Melker pointed to the steady decline in Bitcoin’s market dominance, suggesting that altcoin investors might enjoy favorable conditions for a while longer. Notably, a drop below 60.3% could ignite further upward momentum.
