Crypto markets news: The world’s biggest cryptocurrency reached a high of $107,995 on May 21, but remained between the $106-107k levels during the day, according to data on CoinMarketCap.
At time of writing, Bitcoin was at $106,706.27 up 1.50 per cent from the previous day, with market capitalisation of $2.12 trillion, up 1.50 per cent day-on-day, and trading volumes down 2.04 per cent to $53.65 billion.
According to the CoinSwitch Markets Desk, this is the first time since January that Bitcoin has surged past the $107k level and is 2 per cent away from its all-time high, as bullish momentum intensified.
“Bitcoin futures open interest rose by 10.65 per cent from last week to $74.35 billion, led by Binance with $12.28B, signaling growing leverage in the market. Institutional demand also played a role, with US spot BTC ETFs recording net inflows of $41.7 million yesterday, marking their fifth consecutive day of inflows,” they said.
Himanshu Maradiya, Founder and Chairman, CIFDAQ noted that the cryptocurrency market “remains in a consolidation phase”.
Outlook for Bitcoin: Experts Eye Long-Term Growth
According to Alankar Saxena, Co-founder and CTO of Mudrex, Bitcoin continues to build momentum, briefly testing the $107,000 level as bulls maintain control.
“Net volume delta on major exchanges has turned positive, reflecting growing spot demand. Historically, an increase in spot demand often led to key market tops, driven by rapid sentiment shifts. Notably, Bitcoin supply on exchanges has dropped to 7.1 per cent, the lowest since November 2018, indicating rising investor confidence and a shift toward long-term holding.”
He expects that this reduction in sell-side pressure indicates further upside. “Currently trading near $106,800, BTC faces resistance at $108,000, with support at $105,000, setting the stage for its next potential breakout,” Saxena noted.
According to Alex Kuptsikevich, market analyst at FxPro, Bitcoin is being driven upwards by a crowd of retail investors, who are also driving the US stock market. “Small players don’t care that the US economy is slowing down, and the Fed is not going to cut rates. Traders are buying the S&P 500 and digital assets simply because they are rising…Traders are not particularly concerned about the fact that as Bitcoin grows, the number of fraudulent transactions increases,” he pointed out.
Bitcoin’s All-time highs close?
CoinDCX research team thinks so. “After the bulls managed to revamp a strong rise before the day’s close. Despite a small drop in the volume, the markets have surged, which indicates a drop in the bearish interference,” it noted.
Riya Sehgal, Research Analyst at Delta Exchange concurs, she feels that rebounding from $103k levels to $106k levels shows “solid buyer interest at lower levels”, and that the focus will now be at potentially moving toward $110,000 and new all-time highs. “However, until that level is convincingly breached, the market may continue ranging, allowing for healthy accumulation,” Sehgal added.
While he did not mention all-time highs, Kuptsikevich also feels that “if the resistance at 107K is broken, there are more chances to restore the uptrend”.
Ethereum outperforming Bitcoin? Details
CoinSwitch Markets Desk: Meanwhile, Ethereum is holding near the $2,500 level and trading above both its 50- and 100-day moving averages.
Riya Sehgal, Research Analyst at Delta Exchange: Ethereum, on the other hand, has been showing stronger relative strength, gaining nearly 60% over the last month and outperforming Bitcoin. It is trading around the $2,500 mark, a key psychological resistance. While structural indicators like the Golden Cross and ascending trendlines suggest a bullish setup, on-chain data points to short-term overheating. Elevated trading volumes and profit-taking around $2,500 could trigger a minor pullback or consolidation.
In the near term, we expect volatility to remain elevated, with ETH needing to hold above $2,200 and BTC above $105,000 to sustain bullish momentum. Broader market sentiment remains cautiously optimistic as we await further confirmation of trend continuation.
Harish :Vatnani, Head of Trade, ZebPay
Ethereum dropped 4.3% on the day, sliding from $2,500 to $2,400 after a strong monthly performance. The sudden downturn led to $264.40 million in liquidations, with long positions accounting for $205.28 million, according to CoinGlass. This correction comes after a bullish month for the broader crypto market, buoyed by easing trade tensions — including trade deals between the U.S. and the U.K., and more recently, with China. Amid these developments, Ethereum co-founder Vitalik Buterin introduced a new proposal emphasizing the need to simplify node operations, warning that overreliance on third-party access points could erode decentralization and user privacy.
At the time of writing, ETH was trading at around $2,500
ETH, after taking support at the key level of $1,350, started moving upward and was consolidating in a range between $1,775 and $1,875. The asset eventually gave a breakout above this range and witnessed a massive rally. Prices surged by almost 97% from the recent lows of $1,385 to $2,738. Following this move, ETH experienced some profit booking, causing the price to drop by nearly 15%. The asset currently faces strong resistance at $2,850. If it breaks and closes above this level with good volumes, we can expect prices to rally further to $3,000 and $3,350.
CoinDCX research team: Meanwhile, the other altcoins experience a small rise, including Ethereum, which is stuck around $2550. Litecoin, Cardano, Solana, etc. are yet to reach their respective resistance, while the top gainers include Pi, OFFICIAL TRUMP, and Fartcoin, with 10% to 13% gains. Meanwhile, Pyth Network leads the losers with over a 7% drop, followed by Story & Litecoin with 4% each.
Big moves could be on the horizon, as some rumors suggest Coinbase could acquire USDC issuer Circle, despite IPO plans. Besides, Texas has just passed the Texas Strategic Bitcoin Reserve and Investment Act, allowing the state to invest in Bitcoin, which now awaits the governor’s approval. Argentine President Milei shuts down probe into LIBRA crypto scandal after 3 months of investigation. Besides, Robinhood submits an SEC proposal to regulate tokenized real-world assets, aiming to bring Wall Street on-chain and unlock a $30T market.
CoinSwitch: In DeFi, Aave has solidified its dominance by surpassing $24 billion in TVL, now accounting for 20% of the entire DeFi’s TVL.
