FameEX Hot Topics | Bitcoin Holds at $110K as Institutional Buying Persists

Investor sentiment improved on May 26 after U.S. President Donald Trump announced a delay to his planned 50% tariffs on European Union imports. European stock markets reacted positively to the news, signaling short-term relief. However, Bitcoin was unable to sustain its momentum above the $110,000 mark. This pause has led some traders to question whether a new all-time high is imminent or if a near-term correction is on the horizon.

Despite Bitcoin potentially revisiting the $105,000 level, institutional interest remains strong. Market indicators suggest that bullish traders are neither overleveraged nor panicked. Notably, the BTC futures premium rose to 8% on May 26, up from 6.5% the previous day. While still within a healthy 5%–10% neutral range, this uptick points to growing demand for leveraged long positions. For comparison, the futures premium spiked to 20% in December 2024 when Bitcoin first surpassed $100,000.

President Trump’s postponement of tariffs until July 9 helped reduce market uncertainty, but broader economic concerns remain unresolved. Traders are now focusing on Nvidia’s (NVDA) earnings report, due May 28, which could influence overall risk appetite. Some analysts believe anticipation for that report is partly responsible for Bitcoin’s struggle to break past its prior record high. Nevertheless, Bitcoin options markets continue to signal optimism, with traders pricing in higher chances of an upward breakout.

Options data reveals a -6% delta skew, where put options are trading at a discount—a typical trait of bullish market sentiment. This is supported by rising institutional interest. Between May 19 and May 25, Michael Saylor’s firm, Strategy, purchased $427 million worth of Bitcoin at an average price of $106,237. Simultaneously, Bitcoin spot ETFs drew $2.75 billion in inflows, underscoring a sustained wave of institutional accumulation.

On May 19, JPMorgan CEO Jamie Dimon announced the bank would permit clients to invest in spot Bitcoin ETFs. Although the bank will not provide custody or official crypto recommendations, the move opens a new gateway for its $6 trillion in customer deposits. Still, with U.S. markets closed on May 26 for Memorial Day, optimism may be short-lived. Investors are eyeing upcoming data, including the Richmond Fed index on May 28 and PCE inflation figures on May 30, which could determine if Bitcoin breaks above $112,000 in the near term.

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