- Bitcoin nears $112K high but lacks catalyst, risking a dip.
- Q1 2025 buyers, up 39%, face sell or hold decision, impacting market.
- Fed’s June 18 rate call and Trump’s tariffs may sway Bitcoin’s path.
Bitcoin Nears Record High
Bitcoin is hovering close to its all time high of $111970 but Bitfinex analysts say it lacks the fuel to break through.
In their Monday report they warned that without a major push like a big economic event Bitcoin might face a short term drop.
Currently trading at $109519 per CoinMarketCap it is testing investors who bought in early 2025 at $78513. Those folks are sitting on a 39% gain but they are wrestling with whether to sell or hold as prices stall near the peak.
Bitcoin’s price has increased 5.21% over the past 30 days. Source: CoinMarketCap
The moves these long term Bitcoin holders make could shape what is next for the market. Bitfinex noted that a wave of selling might lead to a drawn out flat period like in March 2024 when Bitcoin hit $73679 and then traded in a $20000 range until November.
Despite a 5.21% climb over the past 30 days there is no obvious driver to keep the momentum going leaving Bitcoin at risk of a pullback.
Fed and Tariffs in Focus
Markets are zeroed in on the Federal Reserves interest rate decision set for June 18. Rate cuts often lift assets like Bitcoin but uncertainty lingers.
Swyftx analyst Pav Hundal also flagged Donald Trumps tariff policies as a risk saying the ongoing tariff threats could keep Bitcoin stuck in a loop for the next couple of months.
With $1.08 billion in short positions at risk of liquidation if Bitcoin hits its all time high per CoinGlass data volatility is a real concern.
Approximately $1.08 billion in short positions are at risk of liquidation if Bitcoin reclaims its all time high. Source: CoinGlass
Sitting just 2.2% below its peak Bitcoin needs a spark to move higher. Without it and with potential selling from long term holders the markets next direction depends on economic signals and investor choices.
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