Bitcoin (BTC) is once again in the spotlight as market volatility surges. As of May 31, 2025, BTC is trading at approximately $104,861, reflecting a 1.3% decline in the last 24 hours.
🔍 Market Overview:
Daily High: $106,383
Daily Low: $104,051
Current Price: $104,861
24-Hour Change: ▼1.3%
🧠 What’s Driving the Drop?
Profit-Taking at Key Resistance
BTC recently tested the $107,500 level but failed to break through. This triggered a wave of short-term selling, as traders locked in profits after a multi-week rally.
Inflation Jitters and Fed Commentary
Fresh signals from the U.S. Federal Reserve suggest inflation remains “stubborn,” raising fears of interest rate hikes. Investors are rotating out of risk assets like crypto, causing broader market weakness.
Technical Correction
After a strong run toward $110K, Bitcoin’s RSI and MACD indicators were flashing “overbought.” This current dip is a natural correction, possibly creating a new support base around $104K.
📊 Bulls vs Bears: What’s the Sentiment?
Bulls are cautiously optimistic. Many see $104K as a key level to accumulate before a potential June breakout.
Bears are eyeing a retest of $102K–$100K if macro conditions worsen.
Whales and institutional wallets remain mostly inactive, signaling a “wait and see” approach.
🔮 Outlook: Is $120K Still in Sight?
Despite short-term pressure, market analysts remain bullish for Q2–Q3 2025, pointing to:
Ongoing institutional accumulation
Political support for digital assets
ETF inflows and limited BTC supply
If Bitcoin holds above $104K, a bounce toward $110K and beyond remains on the table. Many forecasts still project $120,000 by mid-year, especially if macro headwinds ease.