- Bitcoin price retreats slightly on Tuesday after a sharp 4.3% increase on Monday.
- Markets focus on the second day of US-China trade talks after Monday's little breakthroughs promped a pause in global risk appetite.
- KURL announces plans to raise $300 million to buy BTC, signaling increasing interest from corporates.
Bitcoin (BTC) price declines to around $109,000 on Tuesday, just inches away from its all-time high. Sentiment in the crypto market is mixed sentiment due to the absence of substantive breakthroughs in US-China trade talks, which continue in London.
Bitcoin rally fades as no breakthrough in US-China trade talks
QCP Capital’s report on Tuesday noted that the absence of substantive breakthroughs in US-China trade talks led to a pause in global risk assets. The largest cryptocurrency by market capitalization had soared from a low of $105,300 to a high of $110,530, closing above $110,263 on Monday, just 1.56% shy of its all-time high.
“Markets remain in limbo,” says QCP’s analyst. The analyst added that investors are treading cautiously ahead of the US Consumer Price Index (CPI) data to be published on Wednesday. The risk is that continued diplomatic ambiguity morphs into a headwind for broader risk sentiment.
Any positive outcome in US-China trade talks would fuel the risk-on sentiment as trade uncertainty between the two major global economic powers would ease. On the contrary, failure to reach any common ground would likely hurt crypto markets.
Bitcoin institutional demand continues to strengthen
The demand for BTC from public companies continued to strengthen at the start of this week. On Monday, KULR Technology Group, Inc. announced that it would raise $300 million in capital through an at-the-market (ATM) offering of its common stock to support its Bitcoin treasury reserve, following a similar move followed by Strategy.
The interest from public companies in Bitcoin indicates a growing acceptance of BTC as a strategic asset, helping to boost its legitimacy and potentially driving long-term adoption.
Apart from public companies, the institutional demand saw a slight increase on Monday. According to SoSoValue data, Bitcoin spot ETFs experienced a mild inflow of $386.27 million on Monday, breaking a two-day streak of outflows seen last week.
Total Bitcoin Spot ETFs daily chart. Source: SoSoValue
Bitcoin Price Forecast: BTC closes above its key resistance
Bitcoin price retested and found support around its 50-day Exponential Moving Average (EMA) at $101,977 on Friday and then recovered sharply over the next three days. BTC closed above its key resistance level of $106,406 on Monday. At the time of writing on Tuesday, it hovers at around $109,000.
If BTC continues its upward trend, it could extend the rally to retest its May 22 all-time high of $111,980.
The Relative Strength Index (RSI) on the daily chart reads 61, above its neutral level of 50, indicating strong bullish momentum. Moreover, the MACD indicator on the daily chart is about to flip a bullish crossover . If the MACD generates a this bullish crossover, it would provide a buying signal.
BTC/USDT daily chart
If the current retreat intensifies, BTC could extend the decline to retest its daily support level at $106,406.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ripple Price Prediction: How tokenized treasuries could accelerate XRP to $10 by end-2025
The adoption of cryptocurrency-related financial products, including tokenized treasuries, is on overdrive globally, with the focus now shifting to robust networks such as Ripple's XRP Ledger (XRPL).
Sei rallies as Wyoming selects protocol for WYST stablecoin pilot
Sei extends gains above $0.21, decoupling the token from the broader crypto market amid low sentiment and macroeconomic uncertainty. The Wyoming Stable Token Commission selects Sei Network as a candidate blockchain for the WYST, the first fiat-backed stablecoin issued by a US state.
Crypto Today: Bitcoin, Ethereum, XRP nudge higher as geopolitical tensions take a backseat
Bitcoin bulls step up, pushing the price above $106,000, as Trump said he would delay his decision about launching strikes on Iran for up to two weeks. Ethereum rebounds from the 200-day EMA support at $2,477 amid steady interest in the derivatives market.
Solana eyes trend reversal as bearish momentum bottoms out above $140
Solana experiences a minor uptick of under 1% at press time on Friday, with multiple long shadow candles forming above $140 as bearish momentum fades off. The optimism surrounding Solana is on the rise, as evidenced by the SOL Open Interest reaching a weekly high.
Bitcoin Weekly Forecast: The calm before the storm
Bitcoin (BTC) price remains steady above a key support level, trading slightly above $106,000 at the time of writing on Friday. The uncertainty looms as geopolitical tensions between Iran and Israel show no sign yet of an exit strategy from either side.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.