Bitcoin Surpasses $105,000 Amid Institutional Demand and Federal Reserve Signals

Date: June 2, 2025
Source: The Economic Times

Bitcoin reached a significant milestone, trading above $105,000 on Monday, recovering from weekend lows as interest from institutional investors and positive macroeconomic signals fueled optimism in the cryptocurrency market. At 1:23 PM IST, Bitcoin was priced at $105,366, reflecting a 1% increase over the last 24 hours, while Ethereum experienced a slight decrease of 0.1%, settling at $2,506. ## Market Dynamics and Institutional Buying

The cryptocurrency market experienced fluctuations over the weekend following new tariff threats from U.S. President Donald Trump, which heightened trade tensions and caused a ripple of risk-off sentiment across global markets. Bitcoin briefly dipped below the $104,000 mark, leading to more than $600 million in liquidations, marking the most substantial liquidation event in four months. However, strong institutional buying helped Bitcoin rebound, particularly around the $103,000 level.

"Bitcoin is trading steadily above $105,000, bouncing back from weekend lows of $103,200,” stated Alankar Saxena, Co-founder and CTO of Mudrex. Saxena highlighted that the market’s focus now turns to upcoming macroeconomic cues, particularly a speech by Federal Reserve Chair Jerome Powell. He pointed out that $106,000 represents a critical resistance zone; a breakout beyond $106,800 could further push prices toward $108,000. ## Current Market Sentiment

The total cryptocurrency market capitalization rose 0.9% to approximately $3.29 trillion, bolstered by modest gains in various altcoins. XRP, Solana, Dogecoin, and Cardano saw increases ranging from 0.3% to 1.2%, while Bitcoin’s market dominance held steady at 63.7%.

Despite Bitcoin’s recent gains, market experts have noted that Bitcoin ETFs have faced $616 million in outflows over the past two days, largely attributed to BlackRock’s IBIT and Ark 21Shares’ ARKB. Conversely, Ethereum ETFs marked their tenth consecutive day of inflows, suggesting ongoing institutional interest in Ethereum despite broader market volatility.

Technical Analysis and Future Predictions

Riya Sehgal, a research analyst at Delta Exchange, provided insights into Bitcoin’s technical outlook. She indicated that Bitcoin is currently testing support near $103,900 within a descending broadening wedge pattern. A decisive move above $106,800 could lead to price targets near $110,000; however, failure to maintain support at $106,500 might lead to a drop towards $102,500 and even into the $93,000 to $97,000 range.

Ethereum, on the other hand, faces resistance at $2,620, with the possibility of reaching $2,720 if it successfully breaks that barrier. However, if the price struggles to break above this level, a pullback towards $2,470 and $2,420 remains a possibility.

Sathvik Vishwanath, Co-founder and CEO of Unocoin, expressed a positive sentiment regarding Bitcoin’s current consolidation phase near $105,000 following its recent peak of $111,970 in May 2025. He remarked that this period of stability reflects investor confidence, supported by increasing institutional inflows and a decreasing supply from exchanges.

Vishwanath also indicated that forecasts suggest potential year-end peaks for Bitcoin ranging from $180,000 to $250,000. He advised investors to focus on broader macroeconomic trends rather than being swayed by short-term price fluctuations, hinting that this lull could be a precursor to Bitcoin’s next significant upward surge.

Disclaimer: The opinions and insights provided by experts do not necessarily reflect the views of The Economic Times.

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