TL;DR
Bitcoin breaks a nearly 50-day winning streak and falls from its all-time high of $111,880 amid renewed macroeconomic tensions.
BTC options open interest surpasses $49 billion, signaling expectations of increased volatility and short-term strategic selling.
GameStop invests $513 million in Bitcoin, the U.S. eases restrictions on crypto in 401(k) plans, and Russia approves crypto-linked financial products.
Bitcoin is going through its first correction since April, following a rally that pushed its price from $74,501 to a record $111,880. The drop ends a streak of nearly 50 consecutive days of gains and comes amid fresh macroeconomic pressures.
A U.S. court decision suspended a ruling against several federal tariffs, reigniting risk aversion across markets. This pushed 30-year Treasury yields above 5% and triggered a wave of sell-offs in more volatile assets.
Bitcoin Maintains a Solid Bullish Structure
Bitcoin derivatives are also facing intense and growing pressure. Options open interest climbed past $49 billion, a record high confirming increased institutional activity. This trend suggests investors are bracing for a period of heightened volatility, coupled with strategic selling and profit-taking after the latest surge. On-chain indicators support this outlook. The unrealized profit metric reached a historically euphoric zone typically linked to local tops and sharp price swings.
Despite the pullback, Bitcoin maintains a solid bullish structure. The correction serves as a technical reset, driven by the unwinding of leveraged positions and profit realization after one of the fastest recoveries in crypto market history.
Crypto Usage Begins to Expand and Loosen Up
Meanwhile, the U.S. economy is showing signs of strain. Private consumption slowed in April, with households prioritizing savings amid uncertainty over tariffs. Imports fell 20% and the trade deficit shrank 46%, but companies held back on replenishing inventories and cut capital goods orders by 1.3%, the sharpest drop since October. Jobless claims hit their highest level since 2021, and several firms froze hiring plans.
The crypto market also saw other notable moves. GameStop announced a $513 million Bitcoin purchase, aiming to diversify its treasury in response to declining sales. The U.S. Department of Labor withdrew a guideline that discouraged including cryptocurrencies in 401(k) pension plans, while the Bank of Russia authorized crypto-linked financial instruments for qualified investors
