Bitcoin’s $112K Dream: A Tale of Woe and Warnings 🤷‍♂️

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Amidst the bustling world of cryptocurrencies, Bitcoin stands on the precipice of reclaiming its all-time high of $111,970. Yet, the wise men and women of the crypto realm whisper of a lack of fundamental support, a void that threatens to engulf the ambitious asset.

“The risk of a short-term correction continues to build — especially in the absence of a strong catalyst to push Bitcoin decisively above the current all-time high,” the sages of Bitfinex declared in their Monday report, their words heavy with foreboding.

Bitcoiners are faced with a tough call as Bitcoin approaches ATH

“Without a strong macro or structural upside catalyst, Bitcoin is vulnerable to short-term corrections, particularly as long-term holders distribute into strength,” they continued, their voices tinged with a hint of sarcasm. For indeed, what greater strength is there than the strength of the market’s whims?

The analysts, with the wisdom of ancient seers, spoke of the crucial decision facing Bitcoin (BTC) holders. “Market participants still holding coins from Q1 2025, and who held through the sharp drawdown below $80,000, are now being tested as the price churns sideways near ATH levels,” they said, their words a mix of caution and curiosity.

During the first quarter of 2025, Bitcoin hit a low of $78,513. It is trading at $109,519 at the time of publication, just three months later, according to CoinMarketCap data, placing investors who bought at that low point up by 39%. A modest gain, one might say, in the grand scheme of things.

The analysts warned that whatever the long-term holders decide to do “will help define the next leg of the market structure.” They cautioned that a sudden sell-off by Bitcoin long-term holders may lead to a prolonged consolidation phase, a period of stagnation that could test the patience of even the most steadfast investors.

It isn’t unusual for Bitcoin to enter a consolidation phase after reaching new all-time highs. In March 2024, Bitcoin reached an all-time high of $73,679 before entering a consolidation phase, swinging within a range of around $20,000 until Donald Trump was elected as US president in November. A period of uncertainty, indeed, but one that ultimately led to new heights.

$1B in short positions at risk if Bitcoin reclaims ATHs

Despite being 2.2% off Bitcoin’s all-time high of $111,970, not all traders are convinced. Approximately $1.08 billion in short positions are set to be liquidated if it hits the price point, according to CoinGlass data. A sum that could either be a harbinger of doom or a beacon of hope, depending on one’s perspective.

Analysts are currently eyeing macro events such as the US Federal Reserve’s upcoming interest rate decision and developments related to US President Donald Trump’s tariff policies. Events that could tip the scales in either direction, like the whims of the gods in ancient times.

Analysts are eyeing the next Fed decision

The Federal Reserve is set to announce its next interest rate decision on June 18, a key event that many market participants watch for macroeconomic signals. Interest rate cuts are considered a bullish indicator for risk-on assets like Bitcoin and other cryptocurrencies, a fact that is not lost on the market’s keen observers.

Meanwhile, Swyftx lead analyst Pav Hundal recently told CryptoMoon that the ongoing loop of tariff uncertainty from US President Donald Trump is the most significant risk for those betting big on Bitcoin over the next two months. “The biggest threat to bulls right now is that nothing changes over the next two months, and we just stay trapped in this cycle of endless tariff ultimatums,” Hundal said, his words a mix of frustration and resignation.

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2025-06-10 09:39