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Another relatively quiet session for Bitcoin, dipping just 0.29% and once again failing to hold above the critical $104K level. Altcoins continued to slide across the board, further emphasising the recent shift in market sentiment. Bitcoin dominance has now climbed above 63.50%, suggesting investors are rotating out of altcoins and cycling funds back into Bitcoin—an early sign of risk-off behaviour within the crypto ecosystem.
Middle East Power Play: Abu Dhabi Buys Bitcoin
We’ve long known that various nations have been accumulating Bitcoin—either publicly, as seen with El Salvador and the United States, or more discreetly through undisclosed channels. It’s now come to light that Abu Dhabi has joined the fray, with a $408 million investment into Bitcoin via BlackRock’s spot ETF. While not the same as holding spot BTC directly, it’s a clear indication of institutional-grade exposure and strategic positioning.
Adding to this, Binance founder CZ recently described Abu Dhabi as “the AI and blockchain centre”—a statement made just a day after Trump claimed the US is leading China in tech dominance. But perhaps the real race is unfolding in the Middle East. The region is fast becoming the world’s hub for crypto, AI, and frontier technologies—not through talk, but action. While Trump seeks to woo crypto users with pro-crypto promises, the Middle East has already established itself as a regulatory and capital-friendly zone. It’s not just about fostering innovation—it’s about accumulating Bitcoin and building sovereign reserves.
Moody’s Downgrades the US: A Warning Shot
Moody’s, one of the world’s top credit rating agencies—essentially the financial scorekeepers that rate how trustworthy countries and companies are with debt—has just downgraded the United States’ credit rating for the first time in history.
The reason? The US is spending more than it earns, and its national debt is spiralling. By 2035, the country’s debt-to-GDP ratio could reach 134%, and interest payments alone could consume nearly 30% of federal revenue—a massive increase from just 9% in 2021. This downgrade signals growing concerns over the US’s ability to manage its finances. The likely consequence? Higher interest rates, which ripple through the economy—affecting everyone from governments and corporations to ordinary consumers.
Stormrake Spotlight: Bittensor (TAO) ($413)
Stormrake Spotlight: Bittensor (TAO) ($413)
TAO continues its correction, logging red daily closes in six of the past seven sessions. After briefly tagging the 1.414 Fibonacci level and consolidating above the key CPR at $440, it’s now pulling back towards the crucial $390 support we highlighted yesterday.
A retracement to $390 wouldn’t necessarily break the bullish market structure, but if this level fails to hold, TAO risks flipping bearish. This is a key zone to monitor in the coming sessions.
BTC/USD Key Levels and Price Action:
BTC/USD Key Levels and Price Action:
Bitcoin has once again failed to clear the $104K resistance, and is now retreating towards the bottom of the current range at $101.8K. The 21EMA and 55EMA are on the verge of a bearish crossover, hinting at a potential shift in short-term momentum.
Structure remains neutral, with BTC range-bound, but any decisive breakdown below $101.8K could invite stronger downside pressure.
BTC Total ETF Flows for 16 May: + 130.5 million
(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)
*All prices are denominated in USD unless stated otherwise*
Written by Alexandar Artis
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