Crypto Market Overview

BTC (-0.31% | Current Price: 103,850 USDT)
Over the weekend, BTC traded within a narrow range between 102,500 and 105,000 USDT. This morning, after testing the upper band of the 4H Bollinger Bands, BTC failed to break out effectively but found some support for the middle band. Overall, it remains in a consolidation phase within an uptrend. [1]

Last week, BTC ETFs saw a total net inflow of $920 million, marking the third consecutive week of inflows. The previous two weeks saw inflows of $3.03 billion and $1.81 billion, respectively. Continuous capital inflows signal market optimism, and BTC is expected to break its all-time high of $109,500 in May. [2]

ETH (-1.44% | Current Price: 2,500.76 USDT)
ETH briefly surged to $2,600 over the weekend and is now trading in a tight range near the middle band of the 4H Bollinger Bands. After bottoming out around 7% market dominance, ETH has rebounded to about 9%. Since the 20%+ daily surge on May 8, the ETH/BTC ratio has also rebounded from the historical low of 0.0185 to above 0.024. [3]

In contrast to ETH’s strong price performance, ETH ETFs saw net outflows of $38 million last week. The recent rally in ETH seems largely unrelated to ETF flows. Some community voices suggest the rally may be a short-term bounce triggered by historically oversold metrics. [4]

Altcoins
Sectors such as Meme, Gate ETF, and AI Agents have significantly outperformed the broader market. In the Meme sector, MOODENG (SOL) rose over 130% in the past 24 hours and over 10x in the past month. The Fear and Greed Index stands at 70, indicating a market in a state of greed. [5]

Macro
Last Friday, all three major U.S. stock indexes closed higher[6]:

• S&P 500: +0.58% at 5,663.94
• Dow Jones: +0.62% at 41,368.45
• Nasdaq: +1.07% at 17,928.14

As of 10:00 AM (UTC+8) on May 12, spot gold is trading at $3,276.73 per ounce, down 1.48% on the day. [7]

Trending Tokens

MOODENG Moo Deng (+131.36%, Market Cap: $271M)
Moo Deng is a less-than-one-year-old pygmy hippo from Khao Kheow Zoo in Chonburi, Thailand. With its chubby body, silly expression, and quirky antics—like trying to “eat” its keeper or hopping around in fear of a water jet—Moo Deng quickly became a viral sensation on social media.

MOODENG has surged over 6x in the past week, making it one of the best-performing animal-themed meme coins. The rally is largely attributed to MOODENG being listed on several major exchanges, boosting demand.

PIPPIN Pippin (+88.58%, Market Cap: $4,670)
Pippin is a modular AI agent framework designed to help developers build autonomous digital assistants capable of task execution, dynamic planning, and external tool integration. Created by AI developer Yohei Nakajima, Pippin originated from an accidental crypto craze sparked while experimenting with AI-generated SVGs. It has since evolved into a symbol blending AI and meme culture.

The AI agent sector led market gains over the past week, with capital flowing back into previously hyped early-stage projects. PIPPIN reached a historical market cap of $330 million in January 2025, with over 40x returns. As a token project blending meme appeal and AI innovation, its future depends on real-world utility and developer adoption.

GOAT Goatseus Maximus (+50.25%, Market Cap: $214M)
GOAT is a meme coin created by the AI bot Truth Terminal. Since launching in October 2024, GOAT surged over 100x before cooling off in January amid a broader pullback in the AI agent sector. Its market cap briefly fell below $50 million.

Over the past week, with market conditions recovering, GOAT surged more than 200%, pushing its valuation back above $200 million. While most meme coins rely on hype and price momentum, GOAT’s AI agent narrative gives it a unique identity, with some in the community seeing it as more than a meme—a cultural movement.

Alpha Insights

BTC Market Dominance Down 3.4% This Week, Now at 61.9%
According to CoinMarketCap, Bitcoin’s dominance (BTCD) fell 3.4% this week to 61.9%. After peaking at 64.4% on May 8, the broader crypto market rebounded, with ETH surging over 25% in a single day, helping altcoins gain market share.

High BTC dominance often signals a dormant altcoin market but can also precede a rebound. Historically, when BTC dominance hit 60% last November, altcoins entered a mini bull market. Similar patterns were observed in 2019 and 2021 when BTC dominance exceeded 70%, followed by broad rallies. [8]

Altcoin Season Index Rebounds to 36 from April Lows
As of May 12, per CoinMarketCap data, the Altcoin Season Index has rebounded to 36, driven by ETH’s strong rally. The index hit an annual high of 87 on December 4, 2024, coinciding with the market’s peak. In contrast, it bottomed at 12 at the end of April, aligning with a near-term low for altcoins.

Altcoin seasons typically follow this pattern:

• BTC price rises sharply, creating a bullish sentiment
• ETH price follows, and network activity increases
• Momentum spreads across sectors, attracting capital rotation from BTC to newer opportunities

This dynamic is reflected in the market as an “altcoin season.” [9]

Fed Balance Sheet Reduction Slows, Now at $6.7 Trillion
According to public market data, the Federal Reserve’s balance sheet shrank by $17 billion last month to $6.7 trillion, the lowest level since April 2020. Since April 2022, the Fed has trimmed $2.3 trillion—25%—from its balance sheet, about 48% of the $4.8 trillion added during pandemic-era QE. It currently holds $4.2 trillion in Treasuries and $2.2 trillion in mortgage-backed securities (MBS).

In March, the Fed announced it would slow quantitative tightening (QT) from $60 billion to $40 billion per month, signaling a deceleration in balance sheet runoff.

This slower pace of QT is generally positive for emerging risk assets like BTC. It implies reduced liquidity pressure, encouraging higher risk appetite and capital flows into volatile assets like Bitcoin. Furthermore, markets may interpret this as a signal that the tightening cycle is nearing its end, strengthening expectations for future monetary easing—something Bitcoin historically responds well to.

That said, the Fed is still actively reducing its balance sheet, albeit at a slower pace, and macro conditions remain uncertain. BTC’s outlook still hinges on broader economic growth, inflation data, and Fed policy signals. [10]

Gate.io Launchpad: New Listing

Subscription Details

• Subscription Period: May 13, 2025, 11:00 to May 16, 2025, 20:00 (UTC+8)
• Token Price: 1 PFVS = 0.07 USDT
• Total Allocation: 10,000,000 PFVS
• Individual Cap: 10,000 PFVS
• Distribution: Fully unlocked on TGE

Project Introduction
PuffVerse is a metaverse gaming platform built on the Ronin chain, focusing on “casual gaming + social + play-to-earn (P2E)” mechanics. Created by the original Xiaomi game development team, PuffVerse combines Web2 development expertise with cutting-edge Web3 innovation. In 2024, the project secured strategic investment from top-tier Web3 VC Animoca Brands, highlighting its long-term potential. [11]


References:

1. Gate.io, https://www.gate.io/trade/BTC_USDT
2. Farside Investors, https://farside.co.uk/btc/
3. Gate.io, https://www.gate.io/trade/ETH_USDT
4. Farside Investors, https://farside.co.uk/eth/
5. CoinGecko, https://www.coingecko.com/categories
6. Investing, https://investing.com/indices/usa-indices
7. Investing, https://investing.com/currencies/xau-usd
8. CoinMarketCap, https://coinmarketcap.com/charts/bitcoin-dominance/
9. CoinMarketCap, https://coinmarketcap.com/charts/altcoin-season-index/
10. X, https://x.com/KobeissiLetter/status/1920835899740344620
11. Gate.io, https://www.gate.io/zh/launchpad

Gate Research is a comprehensive platform offering in-depth blockchain and cryptocurrency research, including technical analysis, market reviews, trend forecasts, and macroeconomic insights.

Disclaimer
Investing in cryptocurrency markets involves high risk. Users are advised to conduct their own research and fully understand the nature of the assets and products before making any investment decisions. Gate.io is not responsible for any losses or damages arising from such decisions.