Bitcoin Pauses Below $110K as Traders Eye Profit and Tariff Clouds Clear
With U.S. markets quiet for Memorial Day, Bitcoin took a breather just shy of the $110,000 milestone, cooling off after a sharp multi-week rally.
The world’s largest cryptocurrency dipped to $109,000 in thin trading on Monday, following a weekend of modest gains. Still, BTC remains up 1.7% over the past 24 hours and is less than 1% from its recent record high.
Uniswap Leads Altcoin Gains on Tariff Reprieve
Across digital assets, decentralized exchange Uniswap (UNI) led with a 6.6% gain, followed by Chainlink (LINK) and Avalanche (AVAX), up 3.3% and 3.4%, respectively. The rally tracked a rebound in European equities after Donald Trump announced a delay in the 50% EU tariff hike originally scheduled for June 1.
Profit-Taking Sets the Tone
According to Bitfinex research, recent price action signals that BTC could be entering a consolidation phase. A major factor is short-term holders realizing substantial profits—$11.4 billion in the past month versus just $1.2 billion in the prior one.
“At these levels, supply from profit-taking could outweigh fresh demand,” analysts wrote. “Without new inflows, price momentum is vulnerable.”
The analysts identified $106,000 as a possible short-term floor, but warned that if BTC breaks lower, $95,000—the average entry point for short-term holders—could become a critical support zone.
ETF Inflows Continue to Anchor the Market
Despite the stall in price action, institutional appetite remains strong. U.S. spot bitcoin ETFs have attracted $5.3 billion so far in May, helping maintain a bullish backdrop even as volatility stays muted.
With traditional risk markets still digesting geopolitical tensions and trade policy shifts, crypto traders are watching closely to see if Bitcoin resumes its uptrend or enters a deeper pullback phase.
