Bitcoin’s (BTC) stunning rally is experiencing a pause after shattering the $110,000 level and surging to a new all-time high of $111,970 on Thursday. The rally pushed the flagship cryptocurrency into uncharted waters as it consolidated near record-high levels. BTC is marginally down during the ongoing session, trading around $111,000 after encountering resistance around $112,000. BTC’s rally was fueled by growing investor confidence, institutional interest, and the advancement of a pro-crypto stablecoin bill in the House, fueling hopes for regulatory clarity. Markets Flat As Bitcoin Surges To All-Time High US stocks ended Thursday relatively flat as markets factor in the House’s narrow approval of President Trump’s tax-and-spending package. The S&P 500 dropped 0.04%, while the Nasdaq Composite registered an increase of 0.28%. Meanwhile, the Dow Jones Industrial Average traded flat. The bill could add $4 trillion to the federal deficit, and includes sweeping tax cuts and substantially increased military spending. The bill passed the House by a single vote after last-minute revisions to include expanded deductions for state and local taxes and now heads to the Senate. Argent Capital’s Jed Ellerbroek discussed the bill, stating, “Short term, the tax bill is good for the economy. But in the longer term, it adds to the deficit, and that’s bad for markets.” Strategy Planning To Sell $2.1B Of Preferred Stock Michael Saylor’s Strategy has announced plans to offer and sell up to 10% of its perpetual Strife preferred stock (STRF). The firm plans to use the proceeds from the sale to expand its Bitcoin holdings beyond the current 576,230 BTC . The offering comes at $0.001 per share, which will allow the company to raise $2.1 billion to fund future Bitcoin acquisitions. Strategy stated in its press release, “The perpetual strife preferred stock, subject to the terms and conditions of the sales agreement, may be sold by agents by any method that is deemed an 'at the market offering.” The firm has been on an aggressive Bitcoin buying spree and revealed its latest acquisition on Monday, announcing the purchase of 7,390 BTC for $764.9 million at an average price of $103,498 per coin. Strategy now holds 576,230 BTC or 2.74% of its total supply. Strategy’s holdings are valued at approximately $64 billion at current prices, representing an unrealized profit of $24 billion. Bitcoin Open Interest Hits Record High Bitcoin futures open interest (OI) hit record levels on crypto derivatives exchanges as traders anticipate the asset will continue its rally. Open interest hit a peak of just over $80 billion on May 23, according to data from CoinGlass, representing a 30% increase since the start of the month. Open interest refers to the total number of outstanding futures contracts that allow traders to bet on Bitcoin’s future price, which have not been settled, indicating the total amount of market speculation. An increase in open interest indicates a build-up of leveraged positions in the market as traders hold positions with borrowed money. If the price moves against these leveraged positions, traders get liquidated, creating a rapid price decline. Bitcoin options markets are demonstrating a similar pattern, with open interest of over $1.5 billion at the $110,000 and $120,000 strike prices at the Deribit exchange. There is also over $1.5 billion in open interest at strike prices of $115,000, $120,000, and $130,000. Bitcoin (BTC) Price Analysis Bitcoin (BTC) surged past the $110,000 price level, setting a new all-time high of $111,970 on Thursday, fueled by positive macroeconomic developments and the advancement of a pro-crypto stablecoin bill. BTC’s stunning rally has taken a breather over the past 24 hours, as it registered a decline during the ongoing session after encountering resistance around $112,000. The flagship cryptocurrency has entered a price discovery phase as it consolidates around recent highs. Analysts believe the rally will resume after a brief pullback as overall sentiment remains bullish. BTC is stabilizing between $110,000 and $111,000, with bulls eying the $115,000 level as the immediate target. Alankar Saxena, Co-founder and CTO of Mudrex, stated, “Institutional inflows have helped BTC maintain sustained momentum, with Spot ETFs seeing over $600 million in net inflows in a day. Additionally, the US Dollar Index has dropped more than 2.6 percent over the last 10 days, making crypto an attractive hedge against inflation.” BTC could continue its upward trajectory but could also witness a pullback thanks to overbought market conditions. The flagship cryptocurrency registered a notable decline on Monday (May 12), as it started the previous week in the red. The price recovered on Tuesday, rising 1.36% to $104,123, but fell back in the red on Wednesday and settled at $103,568. BTC plunged to an intraday low of $101,459 on Thursday as selling pressure intensified. However, it recovered from this to register a marginal increase and settle at $103,816. Price action turned bearish on Friday and Saturday as BTC registered marginal declines and settled at $103,235. Despite the selling pressure, the price recovered on Sunday, rising over 3% to cross $106,000 and settle at $106,489. Source: TradingView BTC started the current week in the red, facing considerable selling pressure. As a result, the price plunged to an intraday low of $102,135 before recovering to settle at $105,572, ultimately registering a drop of nearly 1%. Despite the negative start to the week, BTC rebounded on Tuesday, rising 1.21% to cross $106,000 and settle at $106,854. The price continued to push higher on Wednesday, rising 2.57% to cross $109,000 and settle at $109,603. Buyers retained control on Thursday as BTC raced to a new all-time high, reaching an intraday high of $111,970 before settling at $111,582. The current session sees BTC down nearly 2%, with buyers losing momentum after encountering resistance around $112,000. The RSI also indicates overbought conditions, so the pullback is along expected lines. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
