Bitcoin Clings to $105K as CryptoQuant Flags Signs of Market Overheating
Bitcoin (BTC) opened the Asian trading week steady above $105,000, showing little volatility after a quiet weekend that saw only a modest 0.4% price change and compressed trading volumes.
Despite an overall bullish backdrop, CryptoQuant’s latest analysis highlights early warning signals of an overheated Bitcoin market. Over the past 30 days, BTC demand surged to 229,000 coins — nearing December 2024’s peak level of 279,000. At the same time, the total holdings of whale wallets have risen by 2.8%, a trend that often indicates a slowdown in accumulation activity.
These developments suggest that the recent surge, which pushed Bitcoin close to $112,000, may be approaching a short-term resistance zone.
CryptoQuant identifies $120,000 as the next major barrier, aligned with the upper bound of the Traders’ On-chain Realized Price metric. This level corresponds to unrealized profits of about 40%, a historical threshold that has previously coincided with local price tops.
While the “Bull Score Index” remains robust at 80, reflecting sustained buying momentum, the combination of growing profit-taking and decelerating demand growth hints at a possible consolidation phase before Bitcoin’s next move upward.
Other Key Developments
James Wynn’s Massive Liquidation: From $17M Loss to ‘Running It Back’
James Wynn, a high-profile Hyperliquid trader known for leveraged bets on Bitcoin and altcoins, experienced a complete liquidation this weekend. His losses surpassed $17 million, shrinking his account balance to a mere $23.
Wynn had earlier faced sharp losses from a $1.25 billion long Bitcoin position that collapsed amid geopolitical tensions and price dips below $105,000. Despite this, Wynn remains defiant, stating on X, “I’ll run it back, I always do. And I’ll enjoy doing it.”
Brazilian Fintech Méliuz Seeks $78 Million to Expand Bitcoin Holdings
Méliuz, the Brazil-based fintech firm, announced plans to raise up to $78 million via a public equity offering. The funds will be dedicated entirely to purchasing Bitcoin as part of the company’s treasury strategy.
Shares reacted negatively, dropping over 8% following the news. The initial offering will issue 17 million shares, potentially expanding to 51 million, accompanied by subscription warrants granting investors the right to buy stock at preset prices.
Currently, Méliuz holds 320.2 BTC and has allocated 10% of its cash reserves to Bitcoin since March.
NYC Comptroller Criticizes Mayor Adams’ Bitcoin Bond Proposal
New York City Comptroller Brad Lander denounced Mayor Eric Adams’ initiative to issue bitcoin-backed municipal bonds, calling it “legally dubious and fiscally irresponsible.”
Lander emphasized the risks posed by cryptocurrency volatility and legal complications, cautioning that such a move could harm the city’s creditworthiness and investor confidence.
Despite Mayor Adams’ active promotion of crypto, including his own paycheck conversions and a digital asset advisory council, the comptroller warned that the proposal conflicts with tax laws and financial regulations.
Market Brief
- BTC: Bounced from $103,813 to above $105,300 on increased volume.
- ETH: Recovered strongly from $2,472 to $2,527 amid high buying interest.
- Gold: Rose 0.6% to $3,311, supported by geopolitical concerns and tariff uncertainty.
- Nikkei 225: Fell 0.89%, reflecting mixed Asia-Pacific market sentiment after tariff announcements.
- S&P 500 Futures: Slight decline on Sunday, following May’s strong performance and ongoing trade policy uncertainty.
