Bitcoin (BTC) stabilized around $106,000 on Friday after three consecutive days of correction, resulting in a nearly 3% decline for the week. The pullback has been supported by rising on-chain profit-taking activity, which has reached a three-month high—indicating increasing selling pressure. Despite short-term volatility, institutional and corporate demand remains robust, with companies like Strategy and GameStop expanding their Bitcoin holdings and spot Bitcoin ETFs recording consistent net inflows.
This week’s market dynamics reflect a tug-of-war between profit realization and long-term confidence in Bitcoin’s value proposition. While some investors lock in gains, major players continue to accumulate, reinforcing the narrative of Bitcoin as a strategic reserve asset.
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Rising Profit-Taking Adds Downward Pressure
On-chain data reveals a surge in realized profits, suggesting that some holders are cashing out after Bitcoin’s recent rally to a new all-time high of $111,980 earlier in the week.
According to Santiment’s Net Profit/Loss (NPL) metric, Bitcoin experienced a significant spike in profit-taking on Tuesday—the highest level since February 5. A smaller but notable uptick occurred again on Friday evening. These spikes indicate that a growing number of holders are selling at substantial gains, contributing to downward price pressure.
The volatility-adjusted net realized profit/loss metric from Glassnode offers deeper insight. This indicator measures realized profits and losses in BTC terms, normalized against Bitcoin’s expanding market cap and adjusted for 7-day realized volatility. It accounts for the asset’s maturation, where returns diminish over time despite continued growth.
Currently, this metric shows elevated profit realization—but still far below the extremes seen during previous bull market peaks. In fact, only 14.4% of historical days recorded higher values when Bitcoin broke past prior highs. This suggests that while profit-taking is increasing, it hasn’t reached panic or euphoric levels typically associated with market tops.
👉 Explore real-time on-chain metrics that signal market turning points.
Corporate and Institutional Demand Holds Strong
Even amid short-term price corrections, corporate and institutional appetite for Bitcoin remains resilient.
On Monday, Strategy acquired an additional 4,020 BTC worth approximately $427.1 million, bringing its total holdings to 580,250 BTC. This move reaffirms the company's long-term conviction in Bitcoin as a treasury reserve asset.
Wednesday brought more bullish news: GameStop, the U.S.-based video game retailer, made its first-ever Bitcoin purchase—acquiring 4,710 BTC. This strategic acquisition follows the company’s $1.3 billion convertible bond issuance in March and forms part of its plan to integrate Bitcoin into its corporate treasury.
Further reinforcing global institutional interest, Japanese investment firm Metaplanet announced on Thursday that it raised $21 million through a bond offering to buy more Bitcoin. The company now holds 7,800 BTC on its balance sheet.
These developments underscore a growing trend: Bitcoin is increasingly being recognized not just as a speculative asset but as a legitimate store of value and hedge against macroeconomic uncertainty.
From an ETF perspective, data from SoSoValue shows that U.S. spot Bitcoin ETFs recorded $458.82 million in net inflows** by Thursday—marking seven consecutive weeks of positive flows since mid-April. May’s total inflows reached **$5.85 billion, the highest monthly figure since December and surpassing the influx seen after former President Donald Trump’s January inauguration.
If this momentum continues, Bitcoin could reclaim its all-time high and push toward the psychologically significant $120,000 level.
Why Bitcoin Failed to Rebound After Tariff Relief
Bitcoin began the week on a positive note after former President Trump announced via Truth Social on Monday that he would delay imposing 50% tariffs on EU goods from June 1 to July 9. This came after his Friday announcement sparked risk-off sentiment, sending BTC down 3.9% amid fears of escalating trade tensions.
The delay eased market concerns slightly, triggering mild risk-on behavior and helping Bitcoin recover above $109,000 by Monday’s close.
However, momentum stalled midweek when the U.S. Court of International Trade blocked Trump’s so-called "reciprocal tariffs" announced on “Liberation Day,” ruling that the president overstepped his authority in imposing broad import duties. A three-judge panel issued a permanent injunction and ordered new directives within ten days. The administration has since appealed.
While global equities rose and the U.S. dollar strengthened on optimism over reduced trade friction, risk assets like Bitcoin failed to capitalize. BTC dipped slightly on Wednesday and closed below $105,600 on Thursday—pulling back from its intra-week peak near $112,000.
Macroeconomic Headwinds Weigh on Risk Appetite
U.S. macroeconomic data released this week failed to bolster investor confidence.
The Federal Reserve’s May meeting minutes, released Wednesday, highlighted “heightened uncertainty” about the economic outlook. Officials noted potential challenges if inflation persists while growth and employment weaken—a difficult policy balancing act ahead.
Thursday added to the bearish tone:
- Pending home sales fell 6.3%, hitting a one-year low
- Initial jobless claims rose to 240,000
- Q1 GDP contracted at a 0.2% annualized rate
“Thursday’s U.S. data came in broadly weak or mixed,” said FXStreet analyst Joshua Gibson.
All eyes turned to Friday’s release of the April Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred inflation gauge. Markets closely watch PCE trends to anticipate future rate decisions—making it a critical driver of risk asset performance.
Technical Outlook: Bullish Momentum Fades
Bitcoin closed below the key daily support level of **$106,406** on Thursday, extending its correction from earlier highs. As of Friday, price action hovered just under $106,000.
A sustained break below this level could open the door to further downside, potentially retesting the major psychological floor at $100,000.
Technically, momentum is cooling:
- The Relative Strength Index (RSI) sits at 54—approaching neutral territory from overbought levels
- The MACD indicator shows a bearish crossover
- Histogram bars are turning red and descending below the zero line, signaling weakening bullish momentum
That said, a decisive close above the all-time high of $111,980** could reignite upward momentum and set the stage for a run toward **$120,000.
Frequently Asked Questions (FAQs)
Q: What causes spikes in Bitcoin profit-taking?
A: Profit-taking typically rises after sharp price rallies when investors choose to lock in gains. On-chain metrics like Net Profit/Loss help identify these trends before broader market reversals occur.
Q: Why are companies adding Bitcoin to their balance sheets?
A: Corporations view Bitcoin as a long-term store of value and hedge against inflation and currency devaluation. Its fixed supply and decentralized nature make it an attractive alternative to traditional cash reserves.
Q: How do spot Bitcoin ETFs influence price?
A: Consistent ETF inflows signal strong institutional demand, often driving upward price pressure. Sustained buying through regulated products increases market legitimacy and accessibility.
Q: Can Bitcoin rebound despite macroeconomic headwinds?
A: Yes. While macro conditions affect short-term sentiment, Bitcoin often decouples during periods of high institutional accumulation or geopolitical stress, driven by its scarcity and digital gold narrative.
Q: What does RSI tell us about Bitcoin’s price trend?
A: RSI measures momentum. A reading above 70 suggests overbought conditions; below 30 indicates oversold levels. At 54, Bitcoin is near neutral—neither overextended nor primed for reversal.
Q: Is $120,000 a realistic target for Bitcoin?
A: Given current ETF inflows, corporate adoption, and historical post-halving cycles, $120,000 is within reach if bullish momentum returns and macro risks subside.
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