Bitcoin (BTC) price stabilized around $103,000** on Friday after facing multiple rejections at the key **$105,000 resistance level throughout the week. A risk-on sentiment prevails, fueled by global trade deals, strong corporate accumulation, and spot ETF inflows. However, traders should remain cautious as defunct exchange FTX announces its second round of repayments to creditors, potentially injecting volatility into the crypto market.
Trade Deals and Softer US CPI Fuel Risk-On Sentiment
Global markets rallied this week amid major trade developments and cooling US inflation data:
- US-China Tariff Reduction: A 90-day agreement lowered US tariffs on Chinese goods from 145% to 30% and Chinese tariffs on US goods from 125% to 10%.
- US-UK Trade Pact: Signed last week, further easing global trade tensions.
- US-Saudi $600 Billion Deal: A landmark trade pact announced Tuesday.
The US Consumer Price Index (CPI) data came in below expectations, reinforcing bets on Federal Reserve rate cuts. Analysts suggest September 2025 as a likely timeline for the first cut, with two reductions anticipated for the year.
Despite the improved macro backdrop, Bitcoin remained range-bound between $100,700 and $105,000, reflecting cautious optimism.
Corporate and Institutional Demand Bolsters Bitcoin’s Strategic Appeal
Key Developments:
- Metaplanet’s BTC Purchase: The Japanese firm added 1,241 BTC ($125.3M), bringing total holdings to 6,796 BTC.
- Ukraine’s National Bitcoin Reserve: Legislation in progress to create a sovereign BTC reserve, potentially partnering with Binance.
- DDC Enterprise’s Treasury Strategy: The e-commerce firm announced plans to acquire 5,000 BTC over 36 months, starting with an initial 100 BTC purchase.
Institutional Inflows: US spot Bitcoin ETFs recorded $343.47M in inflows (as of Thursday), extending a five-week streak. Sustained demand could propel prices higher.
Bearish Signals to Monitor
- Profit-Taking: Santiment’s Network Realized Profit/Loss (NPL) metric shows BTC holders are realizing gains, increasing selling pressure.
- FTX Creditor Repayments: Over $5B in distributions begin May 30, potentially triggering market volatility if creditors liquidate assets.
Technical Outlook: Fading Bullish Momentum
BTC has struggled to breach $105,000 despite multiple attempts. Key indicators suggest a potential pullback:
- RSI at 69 (down from overbought territory).
- MACD nearing a bearish crossover.
Support Levels:
- Immediate: $100,000 (psychological support).
- Resistance: $105,000** (breakout target). A close above could rally toward the all-time high of **$109,588.
FAQ Section
Q1: Why is Bitcoin consolidating near $103,000?
A: BTC faces resistance at $105,000 amid profit-taking and FTX repayment uncertainties, offset by institutional demand and macro optimism.
Q2: How do trade deals impact Bitcoin?
A: Reduced trade tensions boost risk appetite, favoring assets like BTC. The US-China and US-UK agreements have reinforced market confidence.
Q3: What’s the significance of Ukraine’s Bitcoin reserve plan?
A: Sovereign adoption (like El Salvador) enhances BTC’s legitimacy, encouraging long-term investment and regulatory clarity.
👉 Explore Bitcoin’s institutional growth trends
Q4: Are spot ETF inflows sustainable?
A: Yes, if institutional interest persists. Current five-week inflows suggest strong demand, but macroeconomic shifts could alter trajectories.
Q5: What’s the FTX repayment risk?
A: Creditors may sell distributed assets, increasing market supply and volatility. Timing and volume of sales are critical.
👉 Stay updated on BTC price movements
Disclaimer: This article contains forward-looking statements. Cryptocurrency investments involve risks, including total loss. Conduct independent research before making decisions. The author holds no positions in mentioned assets at publication.
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