Profit Taking Extends Bitcoin Losses Amid Market Volatility
Recent profit-taking activities have contributed to Bitcoin's (BTC) extended losses, with the cryptocurrency failing to break its previous high. Market sentiment was initially dampened by potential trade tariffs but stabilized slightly after delays were announced.
Key insights from Santiment:
- 98.4% of BTC holdings and 98.3% of XRP holdings are currently profitable.
- High profitability percentages often precede short-term pullbacks due to increased profit-taking.
👉 Stay updated on BTC price trends
US BTC-Spot ETF Market Flows: A Mixed Picture
The US BTC-spot ETF market recorded $385.4 million in net inflows on May 27, marking a nine-session streak. However, softer demand emerged on May 28:
- ARKB: Outflows of $34.3 million
- FBTC: Outflows of $14 million
Excluding pending IBIT data, total outflows reached $48.3 million, potentially ending the inflow streak.
Bitcoin Price Outlook: Factors to Watch
BTC closed at $107,835 on May 28, down 1.03%. Key drivers for the near term:
Bearish Scenario
- Rising trade tensions
- US recession fears
- Legislative setbacks
- Hawkish Fed signals
- ETF outflows
Bullish Scenario
- Easing trade tensions
- Bipartisan crypto bill support
- Dovish Fed stance
- Strong ETF inflows
👉 Explore crypto market strategies
Legislative Updates
- Market Structure Bill: Potential introduction of an amended version on May 29.
- Bitcoin Act: Proposes US government acquisition of 1 million BTC over 5 years with a 20-year holding period.
FAQ Section
Why is XRP under pressure?
XRP faces uncertainty due to the pending SEC settlement vote, impacting investor sentiment.
What’s driving Bitcoin’s volatility?
Profit-taking, ETF flow fluctuations, and macroeconomic factors like trade policies and Fed cues are key contributors.
How do ETF inflows affect BTC prices?
Sustained inflows typically support price rallies, while outflows may signal weakening demand.
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