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- Analysts believe the current low volaility phase may be setting the stage for a significant market movement, with Bitcoin dominance potentially rising further to 71%.
- BlackRock’s IBIT has emerged as a top choice for institutional investors, with $9.5 billion in inflows during May.
Bitcoin (BTC) price has been trading in a tight range between $102,000 and $106,000 over the past two weeks. Market experts believe that although this reduced volatility might trouble traders, it could still be beneficial to spot Bitcoin ETFs, particularly BlackRock’s IBIT.
IBIT has become institutional investors’ top choice to seek Bitcoin exposure, as visible through $9.5 billion inflows in May alone. Furthermore, Bitcoin ETFs provide investors with systematic exposure to BTC without worrying much about price volatility. This stability makes them attractive for long-term holding.
Furthermore, amid the global macro uncertainties, rising bond markets, and rising US debt hinting at a fragile economy, institutional confidence in BTC is growing. Since mid-April, inflows into ETFs like BlackRock’s IBIT have skyrocketed, reaching a total of $48.4 billion, as per data from Farside Investors.
Low Bitcoin Price Volatility Could Lead to Major Market Movement
As per the historical Bitcoin price trends, these prolonged periods of low volatility often set the stage for significant price surges, as highlighted in our previous story. Similar calm phases preceded major rallies in 2021 and 2023, during which market participants consolidated positions ahead of breakout moves.
Analysts believe the current low-volatility phase could be a precursor to the next Bitcoin price movement. Furthermore, any drop in BTC dominance, could pave the way for altcoins, leading to diversification of funds in the broader crypto market, as per the CNF report. However, before that, Bitcoin dominance is likely to climb further for a while.
Popular analyst Rekt Capital noted that BTC dominance stood at 64% by the end of May. The below chart from the analyst indicates a potential rise towards the 71% mark over time, signaling BTC’s increasing control over the market capitalization landscape. As dominance grows, altcoin traders may face constrained opportunities in the near term.
IBIT Stock Becomes Traders’ Choice Despite Capital Rotation
As mentioned in our earlier report, BlackRock is seeing capital rotation from its Bitcoin ETF IBIT to its Ethereum ETF ETHA. Despite this, IBIT stock remains traders’ favorite, eyeing an additional 28% upside this month of June.
A significant options trade on BlackRock’s spot Bitcoin ETF (IBIT) suggests heightened expectations for a sharp price rally by the end of June. On Tuesday, a trader purchased 3,000 contracts of the IBIT $77 strike call option, set to expire on June 27, as reported by Barchart.com. The transaction, involving a total premium of $39,000, reflects a bullish outlook on the ETF.
Bitcoin $BTC Unusual Options Trade 🚨
A trader bought 3,000 $IBIT 77 strike calls expiring June 27 this morning for $0.13 (total premium of $39,000) pic.twitter.com/eKcz6T3qyi
— Barchart (@Barchart) June 4, 2025
The $77 strike call indicates the trader anticipates the ETF’s price to exceed that level before expiration. With IBIT closing at $60.40 on Tuesday, this position implies an expected rally of over 28% within the coming weeks.
