Bitfinex released its latest cryptocurrency market analysis, highlighting that Bitcoin is experiencing its first notable correction since April, following a fast 50 percent increase that lifted the price from $74,501 to a new all-time high of $111,880.
The current retracement signals a shift in market momentum after nearly 50 consecutive days of gains with minimal pauses. This correction aligns with broader macroeconomic developments, particularly after a US Court of Appeal decision delayed a ruling that had previously challenged the legality of certain US tariffs. The resulting uncertainty contributed to a rise in 30-year Treasury yields above 5 percent and triggered risk-averse sentiment across financial markets.
According to the firm, concurrently, activity in Bitcoin’s derivatives sector has intensified. Open interest in options has reached a new record of $49.4 billion, indicating heightened institutional involvement and increased speculative or hedging activity following Bitcoin’s recent peak. This suggests market participants are bracing for elevated volatility amid potential macroeconomic challenges and continued profit-taking.
Supporting this view, on-chain data shows the Relative Unrealised Profit indicator has moved beyond its +2 standard deviation band, entering a zone historically associated with euphoric sentiment and potential for sharp price fluctuations.
While prices have declined, the analysis characterizes this move as a constructive pause rather than a broader breakdown. The correction appears to be driven primarily by leverage reduction and profit realization following one of the strongest recoveries in the asset’s history.
US Economy Shows Signs Of Pressure Amid Uncertainty, Despite Easing Trade Tensions With China
In contrast to other global trends, the US economy is beginning to exhibit signs of pressure as both consumers and businesses respond to an environment shaped by trade uncertainties, moderated demand, and unclear policy direction.
Consumer expenditure slowed markedly in April, with many households opting to increase savings instead of spending on non-essential items, amid rising apprehension over the potential long-term impact of heightened tariffs. Although inflation remains contained at present, this may be temporary, as companies are expected to begin transferring increased import costs to end consumers.
Trade conditions also saw a notable shift during the same period, notes Bitfinex. Imports declined by almost 20 percent in April following an earlier surge aimed at avoiding tariff hikes, contributing to a 46 percent reduction in the goods trade deficit.
While this decrease in the trade gap may provide a short-term lift to GDP figures, flat business inventory levels suggest companies are reluctant to invest or replenish stock. Simultaneously, new orders for core capital goods—a key gauge of business investment—fell by 1.3 percent, marking the sharpest monthly decline since October and reflecting increased corporate restraint.
Labor market indicators are also beginning to show signs of softening. Continuing jobless claims reached their highest point since 2021, and more companies are halting hiring plans. Corporate earnings saw a drop in the first quarter, and overall business sentiment has weakened.
Although a temporary easing in trade tensions between the US and China has helped consumer sentiment rebound slightly in May, primarily on hopes of tariff reductions, caution remains prevalent among businesses and households, who appear to be taking a measured, observant stance amid ongoing uncertainty.
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