BTC’s $100K Surge Lures Buyers, AI Tokens Gain

Bitcoin's Newcomer Surge and Cautious Momentum

According to on-chain data from Glassnode, Bitcoin's price recently surpassed $100,000, pushing its market cap beyond $2 trillion for the first time since January 31. The surge in interest from first-time buyers is evident, with the relative strength index (RSI) for these newcomers holding at 100 throughout the week, indicating robust buying activity.

The cautious sentiment in the Bitcoin market is underscored by the weak demand from momentum buyers, who typically capitalize on established trends. Glassnode's data reveals that the 30-day RSI for these buyers remains at a low 11, indicating their weaker presence. This lack of follow-through suggests potential price consolidation or a pullback if fresh inflows do not continue to sustain the current trend.

The recent surge in Bitcoin's market cap has sparked retail FOMO, a phenomenon where investors are compelled to buy due to the fear of missing potential gains. Glassnode's supply-mapping tool highlights this trend, showing sustained strength in new demand. However, despite the influx of new buyers, seasoned traders remain cautious, as the activity of other investor cohorts isn't as encouraging, raising the possibility of a BTC price consolidation or pullback.

Smart Money Shifts to Mid-Cap and AI Tokens

In parallel, smart money is reportedly shifting towards mid-cap and AI-related tokens. Data from Stalkchain indicates significant inflows into tokens like $POPCAT, $PENGU, and $GOAT, attracting substantial smart money.

In the AI sector, projects such as $GRIFT, $PIPPIN, $ARC, and $SWARMS, despite their relatively smaller market caps, have attracted six-figure net inflows. Meanwhile, tokens like $GRIFT, $USELESS, $SIGMA, and $RETARDIO show stable accumulation patterns. Micro-cap projects with market values below $14 million, such as $PUPS, $HAPPY, and $FRED, are also gaining varying degrees of attention.

Positive Signals Boost Market Sentiment

With the recent release of the U.S. April CPI data providing positive signals to the market and the likelihood of a Federal Reserve rate cut in June increasing significantly, market sentiment has warmed up. This shift is further evidenced by the Fear and Greed Index, which stood at 74 on May 13, indicating a move towards "Greed" and suggesting that the market is poised for potential explosive growth. Meanwhile, altcoins and mid-cap tokens are increasingly capturing market attention, potentially signaling a new phase in the upcoming bull market.