Bitcoin surged close to a fresh yearly high, driven by renewed hopes that the United States and China are on the verge of finalising their long-awaited trade agreement. The leading cryptocurrency peaked just under $110,300 before retracing slightly to $109,560, as per TradingView data. The price action reflects investor optimism following comments from US President Donald Trump, who claimed the deal is “done, subject to final approval” between himself and Chinese President Xi Jinping.

Trump’s Tariff Statement Boosts Market Sentiment

In a post on Truth Social, Trump said the US is set to impose 55% tariffs while China will apply 10%, declaring the trade relationship “excellent.” This comes after months of tension marked by reciprocal tariff threats that rocked global markets, including crypto. Analysts suggest the announcement has temporarily calmed fears, leading to a bounce in both Bitcoin and broader market sentiment.

Source: Donald J. Trump

Iliya Kalchev of Nexo noted, however, that Wall Street futures saw a minor dip, indicating some skepticism about the substance of the agreement. “While tensions over rare earth exports may be easing, concrete policy shifts remain to be seen,” he said.

China Confirms Trade Framework Progress

On the Chinese side, Vice Commerce Minister Li Chenggang confirmed that the two nations had reached an “in-principle agreement” to settle trade disputes through cooperative measures. Speaking to Chinadaily, Chenggang said the discussions in London were “candid and in-depth,” indicating both sides are serious about resolving outstanding issues.

This progress may bring much-needed stability to global markets, particularly crypto, which has been sensitive to geopolitical and macroeconomic disruptions.

Crypto Markets Recover from Tariff Shock

Earlier in April, Bitcoin had plunged to a year-to-date low of $74,434 after Trump announced new import tariffs. The news wiped out over $5 trillion from the S&P 500 and triggered a sharp drop in investor sentiment. Venture capital activity in the crypto space also slowed, with only 62 VC rounds recorded in May, a 2025 monthly low, according to Cointelegraph.

BTC/USD, 1-day chart. Source: TradingView

Aurelie Barthere of Nansen attributed the slowdown to a “combination of market prices and sentiment,” which had deteriorated amid heightened tariff tensions.

Relief Rally or Temporary Reprieve?

While Bitcoin’s recovery is promising, analysts remain cautious. Raoul Pal, CEO of Global Macro Investor, warned that much of the negotiation process may be “posturing,” with real concessions yet to be confirmed. Investors are now watching closely for formal approval from both nations’ leaders.

If finalised, the US-China trade deal could mark a turning point for global markets and fuel further upside for Bitcoin and digital assets. Until then, the market may continue to fluctuate on headlines, a familiar dynamic for crypto in uncertain times.

As the United States grapples with rising fiscal instability and mounting debt, Bitcoin is emerging as a preferred hedge, with analysts forecasting a meteoric rise in its price. According to Bitwise Asset Management, the world’s largest cryptocurrency could soar to $200,000 by the end of 2025, with its fair market value potentially hitting $230,000. This bullish outlook is backed by a confluence of macroeconomic triggers, surging demand from institutional players, and accelerating adoption of crypto investment products like ETFs.

Below, we break down the key catalysts fuelling Bitcoin’s rally and the broader implications for crypto markets.

US Debt Crisis and BTC Scarcity

The latest Bitwise report, authored by researchers André Dragosch and Ayush Tripathi, outlines how growing structural imbalances in the Bitcoin market are contributing to a supply-demand mismatch. The Bitcoin network produces just 165,000 new BTC annually, while demand from spot Bitcoin ETFs, corporations, and even sovereign entities is rapidly outpacing this supply.

As the U.S. grapples with inflation pressures and a widening federal deficit, Bitcoin’s fixed supply and decentralised structure offer a compelling alternative to traditional fiat-backed assets. Bitwise analysts argue that this scarcity makes Bitcoin uniquely positioned to benefit during periods of fiscal uncertainty.

Technical signals also support this thesis: the Optimized Trend Tracker (OTT), a key technical indicator, recently turned bullish for the first time since mid-2024, potentially signalling the beginning of a major breakout.

Institutional Appetite Accelerates with GameStop and ETFs

Institutional adoption is playing a significant role in Bitcoin’s upward trajectory. A growing number of public companies are now adding Bitcoin to their balance sheets. Bitwise reports that 79 listed firms now hold over $57 billion worth of BTC, a 160% surge year-over-year. This trend is being driven by a desire to hedge against inflation and diversify away from U.S. Treasury holdings.

One notable example is GameStop, which recently acquired nearly 5,000 Bitcoin as part of its strategic pivot into the crypto space. In tandem, Bitwise launched a covered call ETF focused on GameStop (ticker: $GMEY), designed to capitalise on the stock’s volatility while offering income through options strategies.

“Crypto and GameStop share one thing in common volatility,” said Bitwise CIO Matt Hougan. “And the beauty of covered call strategies is that they turn volatility into income.”

This latest ETF adds to Bitwise’s growing suite of innovative products, including those tied to MicroStrategy and Coinbase, with more in the pipeline.

GENIUS Act May Reshape Crypto’s Future

Beyond market dynamics, regulatory clarity is proving equally critical to Bitcoin’s potential rally. The U.S. Senate has recently advanced the GENIUS Act, a bipartisan stablecoin bill that could lay the foundations for comprehensive crypto legislation.

Hougan described the bill as “the most important regulatory development in crypto’s history,” even more impactful than the SEC’s approval of spot Bitcoin ETFs in January 2024. The GENIUS Act aims to formalise how stablecoins are issued and regulated, providing much-needed legal certainty in an industry long governed by patchy executive orders and interpretations.

Moreover, stablecoins have become major purchasers of U.S. government debt, making their regulation not only a matter of crypto market stability but also a national fiscal interest. Hougan believes political momentum is on the bill’s side, especially with growing Treasury dependency on stablecoin liquidity.

Bitcoin in Portfolios: High Reward, Lower Risk

One of the most compelling arguments in favour of Bitcoin’s growth is its evolving role in diversified portfolios. A Bitwise study comparing traditional 60/40 stock-bond portfolios with those that included 5% to 10% Bitcoin revealed a surprising outcome: portfolios with Bitcoin exposure outperformed on a risk-adjusted basis without significantly increasing overall volatility.

“The old days of 60/40 portfolios are over,” said Hougan. “Modern investors need to think in terms of stocks, cash, and crypto, adjusting the risk according to market conditions.”

This perspective aligns with the broader institutional shift toward crypto as a legitimate asset class, not just a speculative play. Bitwise currently offers spot Bitcoin and Ethereum ETFs, with pending applications for Solana, XRP, and Dogecoin ETFs awaiting SEC approval. The growing variety of regulated products gives investors safer and simpler access to digital assets.

A Crypto-Driven Financial Reset?

As fiscal strains mount in the U.S., Bitcoin stands at a critical intersection of macroeconomics, market demand, and regulatory transformation. With Bitwise projecting a $200,000 price target within the next 18 months, the cryptocurrency’s future appears to be tied not just to hype, but to deeper structural shifts in the global financial system.

The crypto market faced a major shakeup as over $1 billion in leveraged positions were wiped out, following a sharp decline in Bitcoin price. This downturn, triggered by a mix of macroeconomic concerns and market-specific events, comes just ahead of a significant crypto options expiry and key US economic data, which could further impact investor sentiment.

Bitcoin Plunges Below $101K Amid Broader Market Decline

Bitcoin (BTC) dropped nearly 5% to a low of $100,372, reflecting mounting pressure from external macroeconomic factors and market liquidations. The fall extends Bitcoin’s decline to more than 10% from its all-time high, dragging down the broader crypto market. A high-profile spat between Elon Musk and Donald Trump also weighed on market confidence, adding to the already volatile sentiment.

Altcoins were not spared in the sell-off, with Ethereum (ETH), Ripple (XRP), Solana (SOL), Dogecoin (DOGE), Cardano (ADA), and newer tokens like HYPE and SUI all posting sharp losses. While Bitcoin has since rebounded slightly to trade above $102,400, the short-term outlook remains clouded by uncertainty.

Over $1 Billion in Crypto Liquidations Rock Market

According to CoinGlass data, the past 24 hours saw crypto liquidations surpassing $1 billion, impacting over 227,000 traders. Long positions bore the brunt, accounting for more than $900 million of the total liquidated value, while short positions made up roughly $100 million.

Crypto Liquidation. Source: CoinGlass

The single largest liquidation order was a $10 million position on BitMEX’s XBTUSD pair. In total, Bitcoin and Ethereum saw net liquidations exceeding $600 million, prompting a sharp market correction.

CoinGlass highlighted that this marks the most significant long liquidation event since 25 February, with high-leverage traders being completely wiped out. Among them, trader James Wynn lost 155.38 BTC worth approximately $16.14 million and has reportedly exited all his long positions.

$3.8B in BTC and ETH Options Set to Expire

Market participants are now eyeing the expiry of Bitcoin and Ethereum options contracts on Deribit, the world’s largest crypto derivatives exchange. Scheduled for 8:00 UTC, the event involves 30,000 BTC options worth $3.21 billion and 242,584 ETH options valued at $588 million.

Ethereum Options Open Interest. Source: Deribit

The put-call ratio for Bitcoin options stands at 0.70, with a max pain point of $105,000 higher than the current BTC price suggesting that many traders may have either exited or been liquidated. Ethereum options reflect a similar sentiment, with a put-call ratio of 0.63 and a max pain point of $2,575.

Despite the downturn, crypto futures markets have shown early signs of stabilisation. Open interest for Bitcoin and Ethereum futures rose 0.80% and 1.74%, respectively, in the past four hours, indicating some buying activity amid the dip.

Focus Turns to US Jobs Report and Fed Policy Outlook

Beyond crypto-specific developments, the broader market is closely monitoring US economic indicators for cues on Federal Reserve policy. The 10-year US Treasury yield hovered at 4.39%, showing signs of stabilisation ahead of the May non-farm payrolls report. Meanwhile, the US Dollar Index (DXY) remains steady at 98.8.

With expectations of just 130,000 new jobs, the lowest gain in three months and unemployment forecasted to stay at 4.2%, the labour data could shape the Fed’s interest rate path. A softer jobs report, especially if paired with a rise in unemployment, may bolster the case for a rate cut as early as September.

CME’s FedWatch Tool currently assigns a 54% probability to a 25 basis point rate cut in September. Former President Donald Trump has continued to call for aggressive rate cuts, but Fed officials remain cautious amid global trade and policy uncertainties.

Cautious Optimism Amid Volatility

While some traders are buying the dip, volatility remains high, and caution is warranted. The combination of macroeconomic uncertainty, a key options expiry, and Fed policy speculation makes the coming days critical for the crypto market’s direction. Should the US jobs data trigger expectations of monetary easing, it may provide short-term relief and support a crypto rebound.

Japanese investment firm Metaplanet has intensified its pursuit of Bitcoin dominance with a swift follow-up to its latest capital raise. On May 29, the company issued $21 million in zero-interest bonds to the Evo Fund, a Cayman Islands-based investment firm, just one day after securing $50 million in a separate funding round. The back-to-back announcements mark a significant step in Metaplanet’s strategy to become one of the world’s largest corporate Bitcoin holders.

Zero-Interest Bonds with Flexible Redemption

The freshly issued 17th bond series, totalling $21 million, was offered in denominations of $525,000 each, maturing on November 28, 2025. These bonds stand out in the current market for their zero-interest structure, meaning Metaplanet can borrow capital without incurring additional repayment costs, a strategic advantage in volatile financial conditions.

Interestingly, Evo Fund has the right to redeem the bonds early with a minimum five-day notice. Redemption is allowed either in full or in multiples of $525,000. Metaplanet has also retained the option to trigger redemptions linked to future fundraising events involving the same investor.

In a move that may raise eyebrows in traditional finance circles, the bond issuance comes with no collateral, no guarantees, and no bond administrator. This is permissible under Japanese corporate law, and all payment handling will be managed through Metaplanet’s Tokyo office.

Aiming for 10,000 BTC by Year-End

So far in 2025, Metaplanet has raised a total of $135.2 million to fund its aggressive Bitcoin accumulation plan. This includes:

• $25.9 million in February

• $13.3 million in March

• $25 million in early May

• $50 million and $21 million raised this week

The company currently holds around 7,800 BTC, ranking 11th among corporate Bitcoin holders, according to BitcoinTreasuries. At a current valuation of $840 million, Metaplanet’s average BTC purchase price sits at $91,340.

Source: Metaplanet

Earlier this year, the company deployed strategic options-based accumulation, notably adding 696 BTC in March through cash-secured put options, along with another 145 BTC for $13.6 million in April.

Eyes on US Market with New Florida Subsidiary

On May 1, Metaplanet announced its US expansion via a newly formed subsidiary, Metaplanet Treasury, based in Florida. The subsidiary aims to raise up to $250 million from US capital markets to further its Bitcoin strategy. This move underscores the company’s ambition to tap deeper liquidity pools and align with regulatory structures abroad.

The firm has also been building a high-profile advisory board, with Eric Trump, son of former US President Donald Trump, joining in March—highlighting a growing intersection between politics, finance, and crypto strategy.

Corporate Bitcoin Race Intensifies

Metaplanet’s announcement comes amid a wider trend of corporate Bitcoin accumulation. On May 28, GameStop, the US-based gaming and electronics retailer, revealed its entry into the Bitcoin space with a 4,710 BTC acquisition. The move signals renewed momentum in corporate digital asset investment, mirroring the early moves of pioneers like MicroStrategy and Tesla.

Metaplanet’s bold approach zero-interest funding, unconventional bond structures, and US market expansion signals a paradigm shift in corporate treasury strategy, placing Bitcoin at the centre of long-term capital planning.

As 2025 progresses, all eyes will remain on Metaplanet to see whether it can successfully reach its 10,000 BTC target and further climb the ranks of corporate Bitcoin holders.

Bitcoin’s recent price action is fuelling fresh optimism among traders and investors as it eyes a new milestone of $120,000. Despite a pullback from its recent local high of $111,800, the broader technical structure suggests that the uptrend remains firmly in place. The current retracement appears orderly and healthy, aligning with key Fibonacci levels and long-term moving averages, indicating that the bulls are far from exhausted.

Strong Support Holding at $106,500

The most significant technical development in recent sessions is the firm support forming around the $106,500 zone. This area has proven resilient during the latest dip, coinciding with the 0.618 Fibonacci retracement level — a key ratio often associated with bullish continuation setups.

Adding further weight to this support level is the convergence of two major moving averages, acting as a technical floor. This confluence provides strong backing for the case that the current pullback is merely a higher low within a broader bullish structure, not a precursor to a breakdown. The market’s ability to respect this zone will be pivotal in determining the strength of the next upward move.

Market Structure: Higher Highs and Higher Lows

The bullish structure that began with the $91,500 swing low remains intact. Since then, Bitcoin has been printing a consistent sequence of higher highs and higher lows — a textbook example of an uptrend. This pattern reflects growing confidence and sustained momentum among market participants.

BTCUSDT (4H) Chart, Source: TradingView

Importantly, even after touching $111,800, the pullback has not violated any key structural levels. Instead, it has reaffirmed the bullish bias by finding support at technically significant zones. As long as Bitcoin remains above $106,500, the bias remains upward, and any dips into this region are likely to be viewed as buying opportunities.

Fibonacci Extension Signals $120,000 Target

Using Fibonacci extension tools, analysts have identified $120,000 as the next major target. This level aligns with the 1.618 extension of the most recent bullish impulse, giving it strong technical validity as a potential resistance point in the near future.

Fibonacci extensions are widely used in trending markets to project where the next wave of buying pressure could take price action. In this case, the projected move to $120,000 suggests that Bitcoin still has significant upside potential, provided current support levels continue to hold.

Consolidation or Reversal? All Signs Point Up

The market is currently in a consolidation phase, often mistaken for reversal in volatile assets like Bitcoin. However, the current price behaviour indicates a classic pause within an ongoing uptrend. Volume remains steady, support levels are respected, and there’s no evidence of distribution or topping patterns.

What we’re witnessing appears to be a period of healthy consolidation, possibly forming the base for the next leg higher. With macro conditions relatively stable and institutional interest still growing, the path of least resistance appears to remain to the upside.

Bitcoin has once again captured global attention, reaching an all-time high (ATH) of $109,845, breaching its previous resistance at $109,588. This historic rally has cemented Bitcoin’s position as a dominant asset in the global financial landscape, pushing its market capitalization past $2 trillion. As Bitcoin enters a fresh price discovery phase, market participants are bracing for what lies ahead in this exhilarating journey.

The Drivers Behind Bitcoin’s Meteoric Rise

The latest surge in Bitcoin’s price is attributed to growing adoption, robust institutional inflows, and strong whale activity. Notably, James Wynn, a prominent whale holding 40 times the average BTC portfolio, recently expanded his long position to $1 billion. His move reflects growing confidence among major players, supported by record inflows into Bitcoin Exchange-Traded Funds (ETFs) and a wave of profitable holders.

Additionally, Bitcoin’s Open Interest (OI) has reached a new peak, increasing by $13 billion on Binance alone. This indicates heightened activity in futures and options markets, signifying rising liquidity and volatility. A V-shaped recovery from its recent corrections has further fueled optimism, as Bitcoin comfortably surges above its final resistance zone.

The Golden Cross: A Bullish Signal

Bitcoin’s technical indicators point toward sustained bullish momentum. The 50-day and 200-day Moving Averages (MAs) are nearing a Golden Cross, a classic signal of a long-term uptrend. Simultaneously, the Average Directional Index (ADX) shows a bullish divergence after a near-bearish crossover between the +DI and -DI indicators was averted by the recent price rally.

Such developments not only validate the current uptrend but also suggest that Bitcoin may remain in its price discovery phase for an extended period. This phase is characterized by the absence of significant overhead resistance, allowing prices to explore new highs.

Market Sentiment and Institutional Confidence

While retail traders remain divided on Bitcoin’s next move, institutional sentiment remains decisively bullish. Bitcoin ETFs are experiencing unprecedented inflows, reflecting growing acceptance of Bitcoin as a legitimate financial instrument. Furthermore, the surge in realized cap, a measure of aggregate holder value indicates confidence in the market’s long-term prospects.

Whales, in particular, appear unfazed by short-term volatility. Their increasing positions are a testament to expectations of further price appreciation. The combination of whale activity and institutional participation could act as a powerful catalyst for Bitcoin’s next leg up.

What’s Next for Bitcoin?

Having broken its ATH after 121 days, Bitcoin is poised for further gains. Technical charts suggest that the next significant milestone could be around $119,000. However, the journey to new highs will likely be accompanied by increased volatility, as the market grapples with profit-taking and renewed buying pressure.

Key factors to watch include:

1. The progression of the Golden Cross, which could solidify long-term bullish sentiment.

2. Ongoing institutional inflows, particularly from ETFs.

3. Macro-economic conditions, as Bitcoin’s performance increasingly correlates with broader financial markets.

Bitcoin’s breach of $110,000 marks a pivotal moment, showcasing its resilience and potential for future growth. Backed by strong institutional support, rising liquidity, and robust technical indicators, Bitcoin’s current rally is more than just a flash in the pan. As the market enters uncharted territory, all eyes remain on the flagship cryptocurrency to see how far it can soar. Whether you’re a seasoned investor or a curious observer, Bitcoin’s price discovery phase promises an exciting chapter in financial history.