Yeliz Akmaca 
Bitcoin Increases Dominance: Liquidity and Institutional Demand Rising
Bitcoin reached a strong position in the crypto market with a 64% market dominance by the end of May 2025. Notably, the 1% market depth on US-based exchanges hit a record $290 million, indicating increased liquidity.
Trump Media’s $2.5 billion Bitcoin plan is also attracting attention. Funds raised from equity and bond sales will be used directly to purchase Bitcoin. This move clearly demonstrates growing institutional investor interest in crypto. Meanwhile, BTC has been trading sideways between $106,600 and $111,700 since May 22. Despite short-term uncertainties, this suggests investors are not showing significant selling pressure.
The altcoin market, however, is weakening in response to these developments. Ethereum’s implied volatility (IV) curve has inverted, showing a 60% increase, indicating investors are making rapid position changes. Trading volume in altcoins is concentrated in major projects, while smaller projects are losing volume. According to Kaiko data, liquidity in BTC and altcoin markets significantly declined in Q2 2025. The decrease in trading volumes is more pronounced in altcoins, whereas Bitcoin’s options market shows increased volume. These data imply the market is preparing for short-term volatility, with investors focusing on risk management.
Options Data Signals Bullish Outlook
The BTC options market carries optimism for the near term. Deribit data shows some investors taking positions pricing Bitcoin at $300,000 by the end of June, indicating strong bullish expectations.
Additionally, implied volatility data supports the anticipation of upward movement. Implied volatility reflects investors’ predictions of future price fluctuations of assets like BTC or Ethereum. High implied volatility signals expectations of large price swings, while low implies a calmer market. Investors are becoming more willing to take risks. Bitcoin’s 200-day moving average is around $94,500. The current price is approximately $14,000 above this average, indicating strong momentum. This suggests the market is technically sound and supports Bitcoin’s upward trend. Market moves may accelerate.
Over the last five days, BTC has risen approximately 8.2%, while the S&P 500 index has dropped over 2.6%. This shows Bitcoin’s clear divergence from traditional stocks from a macroeconomic perspective.
You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.