Ethereum also came under pressure, shedding 4% to trade at $2,616. Most major altcoins followed suit. Dogecoin dropped 7.5%, Shiba Inu fell 7.3%, Avalanche declined 8%, while Cardano, Solana, and XRP slipped between 4–5%. Chainlink and Sui also posted losses, while BNB saw a relatively milder decline of 2%.
“Bitcoin is consolidating near $106,000 amid geopolitical uncertainty, as stalled US–China trade talks have revived trade war concerns,” said Edul Patel, CEO of Mudrex. He noted that weaker US economic data, including a GDP contraction in Q1 and rising jobless claims, is further weighing on sentiment. “BTC needs to reclaim the $108,000 level for sustained momentum. Without follow-through buying, it could test the $103,700 level.”
Crypto Tracker
Vikram Subburaj, CEO of Giottus, attributed the sharp drop below $105,000 to “uncertainty regarding US tariffs,” adding that Bitcoin has recovered some ground but must consolidate at higher levels to avoid structural weakness. He pointed out that institutional demand remains strong, citing Coinbase’s Premium Index staying positive for 20 straight days. Open interest in crypto has surged to $75 billion, nearing record highs, with a cluster of short positions between $107,000 and $113,500 potentially setting up the market for a short squeeze.Bitcoin’s dominance has risen to 63%, with a market cap of $2.1 trillion. Daily trading volume has increased 14.5% to $58.83 billion.
According to the CoinSwitch Markets Desk, adding to the volatility, Bitcoin saw a $471 million outflow from ETFs this week. Still, institutional interest appears intact. Meanwhile, Delta Exchange’s Riya Sehgal highlighted a record $6.22 billion inflow into the iShares Bitcoin Trust ETF in May. She noted that Bitcoin remains under short-term bearish pressure, trading below both its 50-day and 200-day moving averages.In a separate development, Pakistan’s newly formed crypto council announced plans to build a strategic Bitcoin reserve.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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