Bitcoin Stalls Amid Economic Uncertainty; Profit-Taking Intensifies
Bitcoin Stalls Amid Economic Uncertainty; Profit-Taking Intensifies
Bitcoin showed minimal movement on Thursday, trading at $105,130 as persistent concerns over U.S. trade tariffs and economic weakness continued to impact market sentiment. Despite a slight 0.4% gain, the cryptocurrency struggled to break out of its current range after reaching record highs in late May. Increased profit-taking activity has also weighed on Bitcoin's recent performance.
Broader Crypto Market Sees Tepid Gains
The broader crypto market mirrored Bitcoin's lackluster performance, with few gains observed despite a rally in U.S. technology stocks. Altcoins such as Ether, XRP, Solana, and Cardano experienced declines, while meme tokens like Dogecoin and $TRUMP also saw losses.
Profit-Taking Activity Surges
Analytics firm Glassnode reported "intense profit-taking activity" in Bitcoin, with on-chain data showing a significant spike in realized profits. Bitcoin's entity-adjusted realized profit exceeded $500 million earlier this week, indicating a notable transition into profit-taking activity.
Bitcoin's Next Move Hinges on U.S. Jobs Data
Analysts at Bitfinex suggest Bitcoin's next move could be influenced by the upcoming U.S. jobs data. A weaker-than-expected report may fuel hopes of earlier Federal Reserve rate cuts, potentially driving Bitcoin toward the $120,000–$125,000 range in June. Conversely, stronger data could lift the dollar and pressure Bitcoin lower, potentially targeting the $95,000–$102,000 range.
Market Sentiment and Economic Uncertainty
While crypto is not directly impacted by trade tariffs or economic weakness, its speculative nature makes it highly sensitive to market sentiment. Uncertainty over U.S. trade policies and the timing of a call between President Donald Trump and Chinese President Xi Jinping has further weighed on markets.
In summary, Bitcoin remains rangebound as profit-taking intensifies and market sentiment is influenced by broader economic concerns. The upcoming U.S. jobs data could provide critical direction for Bitcoin's next move.
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