Bitcoin News

Story: Bitcoin Stalls After Record Rally Tariffs and Profit-Taking Start Market Pause

By Sakamoto Nashi

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Bitcoin has entered a period of "healthy consolidation" after recently touching a new all-time high, with its price now hovering below the $111,880 mark.

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After a dramatic rally that saw Bitcoin climb over 50% from early April’s lows, the market has taken a breather.

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These two seller groups—long-term holders locking in gains and previously underwater wallets exiting positions—have created what Bitfinex refers to as an “overhead supply glut.

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Exchange data also suggests that incremental buying has slowed, and perpetual futures markets remain subdued.

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One of the key macroeconomic triggers behind Bitcoin’s pullback was former President Donald Trump’s tariff threats against European Union imports.

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As fear gripped broader markets, elevated leverage in crypto derivatives led to cascading liquidations, pushing Bitcoin's price below $107,000 in just 36 hours.

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While this sudden drop concerned many, Bitfinex analysts called it a "much-needed reset"—a shakeout that removed unstable positions and offered room for organic demand to…

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The current price action suggests Bitcoin may trade sideways in the near term, fluctuating between last week’s $106,000 intraday low and the upper band near $111,000.

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The report notes that seven consecutive weeks of gains, the longest streak since October 2023, signal strong upward momentum.

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Supporting the idea of a cooling market, on-chain metrics reveal that short-term holders (STHs) are realizing substantial profits.

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Over the past 30 days, short-term holders have realized $11.4 billion in profits, compared to just $1.2 billion the month before.

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Furthermore, the STH Realized Profit/Loss Ratio has climbed to levels typically associated with the final stages of a bull cycle.

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While some investors are concerned about a deeper pullback, the Bitfinex report frames this consolidation as a healthy pause—a necessary step before any potential move higher.

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Historically, Bitcoin has often followed similar patterns: after reaching a new peak, the price pulls back or stabilizes for several weeks, only to rally again once leverage…

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Still, the macro environment remains fragile. Any new geopolitical developments, monetary policy shifts, or fluctuations in ETF flows could affect Bitcoin’s path.

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