The recent release of May’s CPI inflation data by the US Bureau of Labor Statistics showed a year-over-year increase of 2.5%, in line with expectations. Surprisingly, this news did not cause any major fluctuations in the markets, with Bitcoin, equities, and altcoins all maintaining their stability. It appears that investors have already factored in mild inflation as the new normal and are more focused on other factors such as rate decisions, ETF flows, and broader macro narratives.
Bitcoin, in particular, has been on a steady upward trajectory, recently trading above $100,000 for 30 consecutive days for the first time ever. This sustained increase can be attributed to the growing adoption of Bitcoin by states, banks, and corporations, signaling a new era of institutional confidence in the cryptocurrency. Reports indicate that 116 public companies now hold a total of 809.1K Bitcoin, a significant increase from the 312.2K held a year ago. Additionally, over 100K BTC has been added since early April, with more than 25 companies disclosing new holdings. Notably, MicroStrategy and other institutions have ramped up their accumulation of Bitcoin since November 2024, when the market emerged from a consolidation phase.
Despite the strong upward trend in the price of Bitcoin, large holders, or “whales,” have not shown any signs of cashing out their profits. The net realized profit or loss chart reflects this sentiment, as whales typically take profits when the price surges above a certain threshold. However, the current breakout has not prompted them to sell, indicating a bullish outlook on Bitcoin’s future price movements. This optimism suggests that Bitcoin may continue its upward trajectory and potentially reach a new all-time high in the near future.
As Bitcoin approaches the final resistance zone before an all-time high, the price is currently consolidating with a significant increase in trading volume. This heightened activity may indicate panic selling, but it remains to be seen whether the price can hold key levels around $106K after dipping below $108K. If Bitcoin manages to stay above these levels, a new all-time high could be just around the corner. However, if the price experiences a deeper correction and falls below $100,000, it could trigger a strong rebound and propel Bitcoin to new highs.
Overall, the outlook for Bitcoin remains positive, with institutional adoption and bullish sentiment driving the cryptocurrency towards new milestones. As the market continues to evolve and adapt to changing economic conditions, Bitcoin’s resilience and potential for growth remain strong.