Bitcoin skated to $109,000 on Monday amid slowing down memorial day trading, but is up 1.7% in 24 hours. Short-term Bitcoin holders have achieved $11.4 billion in profits over the past 30 days, increasing sales pressure. Temporary US delays in 50% EU tariffs (until July 9th) have driven an overnight increase in crypto and European stocks.
Bitcoin navigated the sluggish trading terms as it pulled back slightly to $109,000 on Monday, May 26th, and traditional US markets remained closed due to Memorial Day holidays.
Despite this minor dip, the best cryptocurrency has maintained its position of strength, retaining profits from a mild weekend rise, and remains attractive to the most ever achieved last week.
While Bitcoin was integrated, there was a noticeable pocket of activity in the broader digital asset market.
The Coindesk 20 Index, which tracks the top 20 digital coins (except Stablecoins, Memecoin and Exchange Token), highlighted the decentralized Exchange Uniswap (UNI) as the standout performer of the day, with tokens surged by 6.6%.
ChainLink and Avalanche (Avax) tokens recorded a respectable profit of 3.3% and 3.4%, respectively.
These benefits were realized primarily overnight, and were supported by a shift in US trade policy rhetoric.
President Trump announced on Sunday that the implementation of the proposal for a 50% tariff on EU goods will be delayed until July 9th.
This was a comeback from his statement on Friday. This called for the tariff to be effective on June 1, resulting in the sale of risky assets, including cryptocurrencies.
European stocks, initially shaking by tariff threats, have rebounded against this news of a temporary reprieve.
Waves of profit: Short-term holders earn cash
Analysts suggest that cryptocurrencies may have entered a more volatile consolidation phase despite the overall positive sentiment that has recently pushed Bitcoin closer to high on record. t
Radar is currently digesting a rapid, nearly 50% surge from lows seen in April, according to a report on Monday from Bitfinex analysts.
A potential factor that potentially reduces the immediate benefits of Bitcoin is the strengthening of profit acquisition by short-term holders.
The Bitfinex report highlighted that this particular investor cohort has achieved a significant cumulative profit of $11.4 billion over the past 30 days.
This figure is in stark contrast to the $1.2 billion profits that the same group has achieved over the last 30 days, showing a significant increase in earnings.
“At these levels, the risk of making profits outweighs the inflow of new demand,” writes Bitfinex analysts.
Prices could start to stall or recede unless there is a corresponding rise in new capital entering the market to absorb this supply.
Navigates choppy water
The upcoming days are considered important in determining Bitcoin’s short-term trajectory.
“The next few days will be key to measuring whether a DIP up to $106,000 sets the lowest range or if there is a larger reset on the card,” the Bitfinex report said.
If a more important pullback is achieved, the critical level of support to monitor is on a short-term holder cost basis, currently around $95,000.
This represents the average price this investor group has acquired Bitcoin.
Analysts say that despite the short-term chops and profitability, the underlying outlook remains constructive.
They pointed to a strong inflow into an impressive $5.3 billion Bitcoin ETF in May.
They suggest that these factors are likely to resume the upward trend towards the third quarter of the year, following this potential integration period.
