TLDR
- Bitcoin (BTC) gained 30% in 30 days, reaching a new all-time high of $111,880 before pulling back to around $105,000
- Altcoin market has stagnated for three weeks as capital flows primarily into Bitcoin, with Bitcoin dominance continuing to rise since 2023
- Tether exchange reserves have been falling throughout 2025, indicating reduced buying power for altcoins despite institutional Bitcoin interest through ETFs
- Analysts expect Bitcoin to consolidate around $106,000 before potentially resuming upward movement, with some predicting targets between $220,000-$330,000
- Spot Bitcoin ETFs saw over $6.2 billion in inflows during May, but this hasn’t directly translated to proportional price increases in the spot market
Bitcoin has delivered a strong 30% gain over the past month, climbing from $86,300 to set a new all-time high of $111,880. The rally began on April 20 when Bitcoin flipped the $86,300 level from resistance to support.
The cryptocurrency has since pulled back approximately 5.4% over the past week. At the time of writing, Bitcoin trades around $105,000 after losing 1.2% in the past 24 hours.
The recent price action suggests Bitcoin may enter a consolidation phase rather than continuing its immediate upward trajectory. Nick Forster, founder of onchain options protocol Derive, describes this as a “healthy pause” before potential further gains.
“While the recent surge to over $111,000 was notable, the current price action suggests a phase of consolidation rather than an imminent breakout,” Forster told Cointelegraph. He believes this consolidation will give the market time to digest recent gains before gearing up for the next phase.
Bitcoin Dominance Rises as Altcoins Lag Behind
Bitcoin’s strength has come at the expense of alternative cryptocurrencies. The altcoin market has stagnated for almost three weeks, with capital flows directed primarily into Bitcoin.
Bitcoin Dominance has been rising since 2023, tracking Bitcoin’s growing share of the total cryptocurrency market capitalization. Even recent declines have failed to break this broader upward trend.
The altcoin market capitalization has lacked strong direction in May, hovering around the $1.2 trillion mark. This stagnation, combined with rising Bitcoin Dominance, indicates altcoins are not receiving substantial capital inflows.
Tether exchange reserves provide insight into broader market dynamics. These reserves peaked at $43.696 billion in February 2024 but have been declining throughout 2025. Falling stablecoin reserves typically indicate reduced buying power in the market.
The decline in Tether reserves helps explain the slowdown in altcoin market cap growth. Meanwhile, Bitcoin’s rally appears driven by institutional interest, particularly through exchange-traded funds.
ETF Inflows Don’t Match Price Action
Spot Bitcoin ETFs have recorded substantial inflows that haven’t been fully reflected in Bitcoin’s price. BlackRock’s iShares Bitcoin Trust alone received over $6.2 billion in inflows during May.
In the trading week ending May 23, spot Bitcoin ETFs recorded $2.75 billion in total inflows. Despite these large institutional investments, Bitcoin’s price hasn’t experienced proportional increases.
Forster attributes this disconnect to the nature of ETF investments. Institutional investors often seek Bitcoin exposure through ETFs without creating immediate impact on spot market prices.
The US Court of International Trade’s May 28 decision to block sweeping tariffs has removed immediate concerns about trade-induced inflation. However, the Court of Appeals ruled on May 29 that tariffs could continue temporarily under emergency powers.
🚨 BREAKING: A federal appeals court allows Trump’s tariffs to stay in effect for now – after a trade court ruled them "unlawful." The legal battle continues, with a possible Supreme Court appeal. pic.twitter.com/e6UGGzYqDZ
— Trader Edge (@Pro_Trader_Edge) May 30, 2025
The Federal Reserve’s next interest rate decision on June 18 will be pivotal for Bitcoin’s direction. Forster suggests the third quarter of 2025 may perform better than historical averages due to potential regulatory developments and continued institutional interest.
Some analysts predict Bitcoin could gain 100% to 200% in this cycle, with targets between $220,000 and $330,000. More conservative estimates suggest Bitcoin could reach $220,000 by the end of 2025.
Bitcoin currently trades around $105,000 after reaching its all-time high of $111,880 on May 22.
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