Bitcoin Pauses Near $94,000 After $20,000 Surge, Altcoins Lag

Bitcoin (BTC) has experienced a slight pause near $94,000 after dropping to $92,000 over the past two days. This pause follows a bullish breakout above key resistance levels earlier in the week, shifting market focus towards the $100,000 level. Major altcoins such as XRP, ETH, SOL, ADA, and DOGE have lagged behind this surge. However, smaller coins like STX, SUI, ONDO, and GRT have shown significant gains, outperforming both BTC and the broader market, as indicated by the CoinDesk 20 Index (CD20) gaining about 3%.

The recent surge in BTC, which has seen a $20,000 increase since April 7, has been driven by increased on-chain accumulation by whales and significant inflows through spot ETFs. The 11 U.S.-listed funds have amassed almost $1.5 billion in net inflows over the past three days. Market gains have also been bolstered by policy developments in the U.S., where the Federal Reserve has lifted its restrictive crypto guidance, allowing state member banks to engage in crypto-related activities without prior notice.

Analysts suggest that the market is currently in a consolidation phase, with a base case projecting accumulation between $90,000 and $95,000. Potential pullbacks to $87,000 are anticipated before a possible breakout towards $100,000 or more in the coming weeks. However, a decisive catalyst is needed to push prices above $100,000. Later today, the University of Michigan will publish its final survey-based inflation expectations report for April, which is likely to show an increase due to President Donald Trump's trade war. The market has likely already priced in these fears and is focusing on next week's U.S. jobs data.

The next significant chapter in the market will be whether the recent volatility has impacted real-world decisions, particularly in the U.S. jobs market. Any deterioration in the jobs data could trigger another round of dollar losses, although a more benign dollar decline is expected as the Federal Reserve is likely to intervene. In terms of Fed pricing, the market now seems comfortable with the first cut in July, depending on the duration of the 90-day pause in Liberation Day tariffs.