Bitcoin bounced back above $103,000 on Thursday after briefly slipping below the $100,000 mark earlier in the day, signaling a short-term pause in the cryptocurrency’s recent rally.
Following weeks of strong upward momentum that pushed Bitcoin near all-time highs, traders took profits amid mixed U.S. economic data. April retail sales came in below expectations, producer price inflation slowed, and jobless claims remained steady. Additionally, manufacturing activity softened, according to the NY Empire State and Philadelphia Fed surveys. Despite these signals, traditional equity markets remained stable, with the S&P 500 rising 0.4% and the Nasdaq flatlining.
Bitcoin’s price dipped to roughly $101,000 in early trading before recovering to the $103,000 level, closing modestly lower over the past 24 hours.
Altcoins struggled more significantly, with the CoinDesk 20 Index dropping 3%. Leading tokens such as Aptos (APT), Avalanche (AVAX), and Uniswap (UNI) fell between 6% and 7%.
Market analysts advise investors not to overreact to this pullback, viewing it as a healthy correction amid a broader upward trend.
Ruslan Lienkha, chief of markets at YouHodler, described the retreat as a normal profit-taking phase following the easing of U.S.-China trade tensions.
“Risk assets like Bitcoin are seeing some short-term profit-taking as momentum in equity markets cools,” Lienkha said.
Kirill Kretov, a trading automation expert at CoinPanel, added that price moves under 5% are often just noise, amplified by thin liquidity and traders locking in gains after recent rallies.
Looking at the bigger picture, there are no clear signs of a market top yet.
Vetle Lunde, senior analyst at K33 Research, noted that Bitcoin’s recent funding rates show cautious trader positioning similar to prior periods of risk aversion rather than speculative exuberance.
“This cautious environment bodes well for sustained growth rather than an imminent peak,” Lunde said.
Steno Research pointed to a less obvious driver of the rally: steady growth in private credit across the U.S. and Europe, in contrast to past bull runs fueled by aggressive central bank liquidity injections.
Samuel Shiffman of Steno Research emphasized that while China’s liquidity efforts have garnered attention, the quieter expansion of Western bank credit is providing crucial support.
Looking forward, improving global financial conditions, aided by a weakening U.S. dollar, are expected to support Bitcoin prices into the summer months.
“We expect positive momentum to continue through June and early July, though the outlook becomes more uncertain by August,” Shiffman concluded.
