Bitcoin’s recent rally has taken a breather, with the asset struggling to maintain its grip on the $110,000 level. After briefly touching highs over the weekend, BTC has cooled to around $109,000 per Coingecko Data, as investors brace for fresh U.S. economic data that could shape sentiment in the days ahead.
Market optimism was briefly bolstered on May 26 after President Donald Trump announced a delay on his proposed 50% tariffs against European Union imports. While the news sparked a positive reaction in European equities, Bitcoin’s momentum faltered, prompting some traders to question whether a breakout toward new all-time highs is near.
Still, key indicators suggest institutional appetite remains strong. The premium on BTC futures—a metric reflecting trader willingness to take leveraged long positions—rose to 8% on May 26, up from 6.5% the previous day. While well below the 20% seen during Bitcoin’s initial climb past $100,000 in late 2024, the current level sits comfortably within the neutral 5–10% range.
Analysts view this as a sign of healthy bullish positioning. Even if Bitcoin dips toward the $105,000 level, the absence of extreme leverage suggests institutional players are comfortable with volatility and see continued upside in the months ahead.
Options Market Flashes Bullish Signals
As Bitcoin consolidates just below its all-time high, traders are turning to macroeconomic catalysts. Trump’s delay of EU tariffs has eased investor anxiety for now, but the broader impact remains to be seen in corporate earnings.
Attention now shifts to Nvidia’s Q2 earnings report, scheduled for May 28. As a key performer in the AI boom, Nvidia’s results are being closely tracked by crypto traders as a proxy for risk appetite. Many analysts believe a strong earnings beat could ripple into the crypto market, possibly giving Bitcoin the boost it needs to revisit and surpass its $111,957 record.
Meanwhile, the options market reflects increasing optimism. The delta skew—a measure of sentiment in options pricing—currently sits at negative 6%, meaning put options are cheaper than calls. This is typically seen as a bullish sign. A skew near zero, as seen on May 25, had previously suggested a neutral stance. The dip into negative territory signals a renewed tilt toward upside potential.
Combined with calm futures markets and institutional inflows, these metrics suggest that while Bitcoin may be in a holding pattern, whales and market makers are positioning for a breakout—especially if Nvidia’s earnings and upcoming inflation data tilt in Bitcoin’s favor.
$3B in Inflows Signal Wall Street Optimism
Institutional demand for Bitcoin continues to grow, quietly reshaping traditional risk frameworks. In a major signal of confidence, Michael Saylor’s firm Strategy acquired $427 million worth of BTC between May 19 and May 25, buying 4,020 coins at an average price of $106,237.
During that same week, spot Bitcoin ETFs saw $2.75 billion in inflows—further reinforcing the view that Bitcoin is becoming a staple in institutional portfolios.
Adding momentum to this shift, JPMorgan CEO Jamie Dimon confirmed during the bank’s Annual Investor Day on May 19 that clients are now allowed to invest in spot Bitcoin ETFs. While the bank will not offer custody or formally endorse crypto assets, the move signals growing institutional acceptance—especially given JPMorgan’s oversight of more than $6 trillion in client assets.
Despite strong flows, broader macroeconomic signals remain mixed. U.S. markets were closed on May 26 for the Memorial Day holiday, creating a brief lull in activity. Meanwhile, concerns over debt levels and recession risks continue to weigh on sentiment. A recent 5.1% drop in mortgage applications, reported by the Mortgage Bankers Association for the week ending May 23, has added another layer of caution to the outlook.
Still, with ETF inflows strong, institutional adoption growing, and derivatives markets showing stability, Bitcoin’s foundation appears solid—even as traders eye looming macroeconomic headwinds.
Quick Facts
- Bitcoin fell to ~$108,900 after weekend highs near $110K
- BTC futures premium rose to 8%, signaling bullish leverage
- Delta skew at -6% suggests rising call option demand
- Nvidia earnings and inflation data now key market drivers
- Strategy bought 4,020 BTC; spot ETFs saw $2.75B inflows
