Bitcoin (BTC) stabilized near $106,000 on Friday, marking a nearly 3% decline for the week. The pullback follows three consecutive days of downward movement, driven in part by increased profit-taking activity among holders, which recently reached a three-month high.
Despite short-term selling pressure, institutional and corporate demand remains robust. Companies like Strategy and GameStop have expanded their Bitcoin holdings, while spot Bitcoin Exchange-Traded Funds (ETFs) continue to record net inflows. This sustained interest underscores confidence in Bitcoin’s long-term value proposition as a strategic asset.
Profit-Taking Activity Reaches Multi-Month High
Recent on-chain data indicates a noticeable uptick in Bitcoin holders realizing gains. Santiment’s Net Realized Profit/Loss (NPL) metric recorded a significant spike on Tuesday, reflecting the highest level of profit-taking activity since February 5. A smaller but similar surge occurred later on Friday, reinforcing the trend of investors capitalizing on recent price gains.
These profit-taking spikes suggest that holders are, on average, selling their positions at a substantial profit, contributing to increased selling pressure in the near term.
Glassnode’s weekly report further highlights that both profitability and spending behaviors among investors have risen notably. However, current levels remain below the extremes observed during previous bull market peaks.
The volatility-adjusted net realized profit/loss metric—which measures realized gains and losses in Bitcoin terms, normalized for the asset’s growing market cap—provides additional context. It also adjusts for Bitcoin’s 7-day realized volatility, accounting for the cryptocurrency’s maturing market dynamics and moderating growth rate.
As Bitcoin’s price surpassed its previous all-time high, significant profit-taking was recorded. Still, only 14.4% of historical trading days have seen higher values, indicating that while profit-taking has increased, it has not yet reached excessive levels.
Strong Corporate and Institutional Interest Continues
Despite the recent price correction, institutional and corporate adoption of Bitcoin continues to grow.
Earlier this week, Strategy added 4,020 BTC—valued at approximately $427.1 million—to its holdings, bringing its total Bitcoin treasury to 580,250 BTC. Shortly after, U.S.-based video game retailer GameStop made its first Bitcoin purchase, acquiring 4,710 BTC. This move followed the company’s issuance of $1.3 billion in convertible bonds in March, as part of its broader strategy to incorporate Bitcoin into its corporate reserves.
On Thursday, Japanese investment firm Metaplanet announced it had issued $21 million in ordinary bonds to acquire more Bitcoin. The company now holds 7,800 BTC in its treasury.
These corporate acquisitions reflect a growing acceptance of Bitcoin as a strategic reserve asset, reinforcing its legitimacy and potentially driving long-term adoption.
From an institutional perspective, U.S. spot Bitcoin ETFs recorded total net inflows of $458.82 million as of Thursday, maintaining a seven-week inflow streak that began in mid-April. May’s monthly ETF inflows reached $5.85 billion—the highest level since December—surpassing the figures observed following the U.S. presidential inauguration in January.
Sustained or accelerating institutional inflows could support a Bitcoin price recovery toward its all-time high of $111,980 and beyond. For those interested in tracking these trends, you can explore real-time market insights.
Market Reaction to Tariff Developments
Bitcoin started the week on a positive note after former U.S. President Donald Trump announced a delay in implementing 50% tariffs on goods from the European Union. The deadline was pushed from June 1 to July 9, providing temporary relief to markets concerned about escalating trade tensions.
The delay briefly improved investor sentiment and spurred mild risk-on activity. Bitcoin responded positively, closing above $109,000 on Monday.
However, mid-week developments introduced new uncertainty. The U.S. Court of International Trade blocked the broad-based tariffs announced by the Trump administration, ruling that the president had overstepped his authority. A three-judge panel issued a permanent injunction against the tariff orders and mandated a new order reflecting the ruling within ten days. The Trump administration has since appealed the decision.
While traditional markets reacted optimistically—with equities rising and the U.S. dollar strengthening—Bitcoin and other risk assets failed to regain momentum. BTC fell slightly on Wednesday and closed below $105,600 the following day, down from its recent all-time high of $111,980.
Macroeconomic Data and Fed Policy Outlook
This week’s U.S. macroeconomic releases did little to support risk appetite. The Federal Reserve’s May meeting minutes, published on Wednesday, highlighted officials’ concerns about persistent inflation and uncertain economic prospects.
“Participants noted that they would face a difficult trade-off if inflation persists while growth and employment weaken,” the report stated.
On Thursday, risk-off sentiment intensified as U.S. pending home sales fell to a one-year low of -6.3%, while initial jobless claims rose to 240,000. Additionally, first-quarter GDP contracted by 0.2% on an annualized basis.
Market attention is now focused on the April Personal Consumption Expenditures (PCE) Price Index report—the Fed’s preferred inflation gauge. The data could provide critical clues about the timing and magnitude of future interest rate adjustments.
Technical Analysis: Bullish Momentum Fades
Bitcoin’s price closed below the daily support level of $106,406 on Thursday, extending the correction that began earlier in the week. As of Friday, BTC was trading slightly below $106,000.
Key technical indicators suggest weakening bullish momentum. The daily Relative Strength Index (RSI) reads 54, approaching the neutral level of 50. Meanwhile, the Moving Average Convergence Divergence (MACD) shows a bearish crossover and rising red histogram bars below the neutral line, signaling potential further downside.
If the correction continues, Bitcoin could retest the psychologically significant $100,000 level.
A decisive close above the all-time high of $111,980, however, could reignite bullish momentum and open a path toward the $120,000 resistance level. Traders looking to navigate these market conditions may consider accessing advanced analytical tools.
Frequently Asked Questions
What is Bitcoin?
Bitcoin is the world’s first and largest cryptocurrency by market capitalization. It functions as a decentralized digital currency, enabling peer-to-peer transactions without the need for intermediaries like banks or governments.
How do altcoins differ from Bitcoin?
Altcoins refer to any cryptocurrencies other than Bitcoin. Some exclude Ethereum from this category due to its unique role and ecosystem. Litecoin, for example, was among the first altcoins, created as a fork of the Bitcoin protocol with modified features.
What are stablecoins?
Stablecoins are cryptocurrencies designed to maintain a stable value, typically pegged to a reserve asset like the U.S. dollar. They provide a less volatile entry and exit point for crypto traders and serve as a reliable store of value during market fluctuations.
What is Bitcoin dominance?
Bitcoin dominance measures Bitcoin’s market capitalization as a percentage of the total crypto market cap. A high dominance value often indicates that investors are favoring Bitcoin over altcoins, usually during periods of market uncertainty or bullish momentum.
Why is institutional demand important for Bitcoin?
Institutional involvement—through corporate treasuries, ETFs, and investment funds—brings increased liquidity, regulatory clarity, and mainstream legitimacy to Bitcoin. This demand can significantly influence price stability and long-term adoption.
How do macroeconomic factors affect Bitcoin’s price?
Bitcoin often reacts to macroeconomic trends such as inflation, interest rate changes, and geopolitical events. As a perceived store of value and hedge against traditional financial risks, its price can be influenced by shifts in investor sentiment toward risk-on or risk-off assets.