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Bitcoin (BTC) is currently taking a break after a strong rally that saw prices climb to a new all-time high of $111,970 in May 2025. Now sitting around $106,000, this pause is not being viewed as a negative sign. Instead, market experts believe this could be a healthy cooldown before the next big move.
According to Nick Forster, founder of Derive, an on-chain options protocol, this kind of sideways price movement often follows a large rally. “While the recent surge to over $111,000 was notable, the current price action suggests a phase of consolidation rather than an imminent breakout,” Forster said in an interview with Cointelegraph.
Market Needs Time to Digest Gains
Forster explained that the current slowdown gives the market time to “digest recent gains” and prepare for what may be the next upward phase. This period of low volatility can help reduce risk and allow both retail and institutional investors to make decisions without the pressure of fast price swings.
Despite this pause, Bitcoin is still up more than 11% over the past month. Prices reached their highest point on May 22 and have slightly cooled since then. But many analysts don’t see this as a sign of weakness. Rather, it’s a moment for the market to breathe before climbing again.
ETF Inflows Point to Institutional Demand
While Bitcoin’s spot price has slowed, there has been a large amount of capital flowing into Bitcoin ETFs (exchange-traded funds). In May alone, BlackRock’s iShares Bitcoin Trust attracted over $6.2 billion in inflows. During the week ending May 23, total spot ETF inflows reached $2.75 billion.
Interestingly, these massive investments haven’t caused a sharp price increase yet. Forster said this is because ETF buyers, especially institutions, tend to hold their investments instead of trading them right away. This behavior adds strength to the market without creating short-term price spikes.
“Despite significant inflows into Bitcoin ETFs, Bitcoin’s price hasn’t experienced a matching rise,” Forster noted. He added that ETF investments often show long-term confidence rather than causing quick market changes.
Interest Rate and Legal News Add Uncertainty
Adding to the mix are two key factors that could impact Bitcoin’s price in the near term: U.S. interest rates and recent court rulings on tariffs.
On May 28, the U.S. Court of International Trade ruled that former President Donald Trump overstepped his authority in imposing sweeping tariffs. However, a day later, the Court of Appeals for the Federal Circuit said Trump could keep the tariffs in place temporarily under emergency powers while the case is reviewed.
Forster believes the legal decisions around tariffs have eased fears of trade-driven inflation, which could support Bitcoin in the short term. But he also said the U.S. Federal Reserve’s next interest rate decision on June 18 will be “pivotal” for Bitcoin’s price. A decision to pause or cut rates could boost the crypto market, while a rate hike might put pressure on prices.
Q3 2025 Could Surprise to the Upside
Looking ahead, Forster said the third quarter of the year could bring unexpected strength. Historically, Q3 has been a slower period for Bitcoin. Since 2013, it has averaged only a 6% gain. But this year might be different.
“The potential for favorable regulatory developments and continued institutional interest may support stronger performance in Q3,” Forster said.
Other analysts agree. Some expect Bitcoin to double or even triple during this market cycle. Bitcoin researcher Sminston With suggested that BTC could reach between $220,000 and $330,000. Meanwhile, another trader, Apsk32, offered a more cautious but still bullish target of $220,000 by 2025.
Final Thoughts
Although Bitcoin’s price has cooled down slightly after hitting record highs, this “pause” may be exactly what the market needs. With strong ETF inflows, ongoing institutional interest, and possibly supportive legal and economic decisions ahead, the next big move might just be around the corner.
For now, Bitcoin remains above $105,000, showing strength even during a slow period. If history is any guide, this quiet phase could lead to another wave of upward movement, especially as we move into the second half of 2025.
