On Tuesday, Bitcoin’s (BTC) hold over the crypto market was strengthened, as its dominance rose to a new four-year high. This surge occurred while crypto traders redirected their capital into the leading asset ahead of the upcoming Federal Reserve policy meeting scheduled for tomorrow.
A holding pattern has settled over the crypto markets, as capital rotation out of altcoins has driven Bitcoin’s market share to its highest level in four years.
Bitcoin (BTC) remained within the $94,000–$95,000 range, rising slightly by 0.4% over the past 24 hours, and continued its narrow trading pattern seen since the weekend.
At the same time, the broad-market index declined by 0.7%, as Ethereum’s ether (ETH) and the native tokens of Sui (SUI), Aptos (APT), and Polygon (POL) exerted downward pressure and contributed to the benchmark’s dip.
An overview of traditional markets revealed consecutive losses in equities, as both the S&P 500 and the tech-focused Nasdaq ended the session down by approximately 0.7% to 0.8%, once again falling short in performance compared to Bitcoin (BTC).
Although significant price movements have remained absent, attention has been steadily shifting toward Bitcoin’s expanding portion of the total crypto market. The Bitcoin Dominance metric has surpassed 65%, marking its highest level since January 2021, according to data from TradingView. This indicates that investors are consolidating capital into the asset they view as the most resilient amid ongoing macroeconomic uncertainty.
Joel Kruger, a market strategist at LMAX Group, described the present market environment as one of pause and anticipation. He observed that “the cryptocurrency market has largely stayed stagnant since the weekly open, with prices entering a holding phase as market participants await a significant catalyst.” According to him, “this driving force could emerge from traditional markets, influenced either by developments related to tariff-induced economic effects or by the upcoming Federal Reserve FOMC decision scheduled for May 7.”
According to the CME FedWatch Tool, the Federal Reserve is widely expected to keep interest rates unchanged. However, traders remain cautious, closely watching for any change in the tone of Fed Chair Jerome Powell that could influence market risk sentiment.
Bitcoin Braces for Impending Volatility Surge
With Bitcoin’s price movement remaining notably flat, K33’s head of research, Vetle Lunde, expects the upcoming FOMC meeting to trigger significant volatility. In a Tuesday report, Lunde highlighted that Bitcoin’s short-term volatility remains “exceptionally compressed,” noting that the 7-day average hit a 563-day low last week.
Lunde noted that “such periods of low volatility in BTC are typically short in duration.” He explained that sharp bursts of volatility usually follow this kind of stability once price movement begins, as leveraged positions unwind and market participants reenter trading activity.
Lunde stated that a major downward cascade appears unlikely, as funding rates for perpetual swaps have remained consistently negative. He further noted that comparable conditions in the past have often presented favorable entry points for medium- to long-term investors, and expressed a preference for “aggressive spot exposure” moving forward.
 hold over the crypto market was strengthened, as its dominance rose to a new four-year high. This surge occurred while crypto traders redirected their capital into the leading asset ahead of the upcoming Federal Reserve policy meeting scheduled for tomorrow.){kind=link}