FameEX Hot Topics | BTC Stagnates at $110K, Yet Institutions Keep Accumulating

Investor sentiment saw a notable improvement on May 26 after U.S. President Donald Trump announced a delay in his proposed 50% tariffs on European Union imports. This decision offered a temporary reprieve for global markets, with European stock indices responding positively. However, the optimism did not fully translate to the cryptocurrency market. Bitcoin failed to maintain its momentum above the $110,000 level, sparking debates among traders about whether a new all-time high is still within reach or if the market is preparing for a short-term pullback.

Even if Bitcoin retraces to around $105,000, indicators suggest the bullish trend remains intact. Institutional appetite for Bitcoin continues to grow, and derivatives market data shows that traders are not excessively leveraged. On May 26, the BTC futures premium rose to 8%, up from 6.5% the day before. While this increase may seem modest, it remains well within the neutral range of 5% to 10% and reflects healthy interest in long positions. For context, in December 2024, the premium reached 20% when Bitcoin crossed the $100,000 mark for the first time.

Trump’s decision to delay tariffs until July 9 eased some near-term market pressures, yet deeper economic concerns persist. Investors are now looking ahead to Nvidia’s earnings report on May 28, which could influence broader market risk appetite. The buildup to this major tech release may partially explain Bitcoin’s hesitation in breaking above its prior highs. Nonetheless, the Bitcoin options market continues to flash positive signals, with an increasing probability of a move higher.

Supporting this sentiment, the Bitcoin options delta skew was recorded at -6%, meaning put options are cheaper than call options—typically a bullish sign. Institutional inflows remain strong. Between May 19 and 25, Michael Saylor’s firm, Strategy, acquired $427 million worth of Bitcoin at an average price of $106,237. Concurrently, spot Bitcoin ETFs saw $2.75 billion in inflows, pointing to steady accumulation by large investors.

Meanwhile, JPMorgan CEO Jamie Dimon revealed on May 19 that the bank will allow clients to access spot Bitcoin ETFs. While JPMorgan won’t offer custody or formal recommendations, this marks a major shift for its $6 trillion client base. With U.S. markets closed on May 26 for Memorial Day, attention now turns to upcoming data—especially the Richmond Fed index on May 28 and PCE inflation numbers on May 30—as key drivers of Bitcoin’s next move above $112,000.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.