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Bitcoin price surge stalls as shorts reap $11 billion in gains, sparking concerns about near-term upside.
Most U.S. markets were closed on Monday for Memorial Day, but European stocks reacted positively to President Trump‘s moratorium on 50% tariffs. Bitcoin price slipped to $109,000 in muted holiday trading, holding near last week’s record high despite short-term selling pressure.
Crypto Market Gains and Losses
Uniswap is a decentralized cryptocurrency exchange (DEX) that allows users to trade Ethereum-based tokens.
It operates on the Ethereum blockchain, using smart contracts to facilitate trades without the need for intermediaries.
Launched in September 2018, Uniswap has grown to become one of the largest DEXs by trading volume.
Its native token, UNI, was introduced in May 2020 and is used to vote on proposals and govern the platform's development.
Uniswap's innovative approach to liquidity provision and trading fees has made it a popular choice among cryptocurrency enthusiasts.
Increased profit-taking contributed to the rally stalling as short-term BTC holders have taken ‘$11.4 billion’ in profits over the past month, Bitfinex analysts noted. Decentralized exchange Uniswap (UNI) led gains in the CoinDesk 20 index, with its token rising 6.6%. Tokens for Chainlink (LINK) and Avalanche (AVAX) also gained 3.3% and 3.4%, respectively.
Profit-taking is a financial strategy where investors sell their assets to realize profits and reduce potential losses.
It involves selling securities, stocks, or other investments at a price higher than the purchase cost.
This technique helps investors lock in gains, manage risk, and maintain a balanced portfolio.
Profit-taking can be triggered by market fluctuations, changes in investor sentiment, or reaching predetermined profit targets.
Choppy Phase Ahead
Bitfinex analysts said that bitcoin may consolidate further unless fresh capital offsets profit-taking. The report noted that increased profit-taking by short-term holders could cap bitcoin’s near-term upside, with this investor cohort realizing ‘$11.4 billion’ in cumulative profits over the past 30 days. At these levels, the risk emerges that profit-taking outpaces new demand inflows.
Long-Term Strength
However, strong inflows to U.S. spot bitcoin ETFs — totaling $5.3 billion in May so far —, low volatility, and lack of froth suggest that bitcoin will likely resume its uptrend into the third quarter of the year after a pause, the analysts argued. The key level to watch is the short-term holder cost basis around $95,000, the average price this group bought the asset.
