Bitcoin Climbs Above $104K Despite Short-Term Pullback, XRP Dips on Market Caution Near $105K Ceiling
Bitcoin showed resilience on Thursday, climbing back above $104,000 after testing the significant $100,000 threshold earlier in the day. While traders grappled with profit-taking following weeks of steady gains pushing BTC close to all-time highs, the broader crypto market experienced a mixed session with altcoins, including XRP, posting declines amid heightened volatility.
The pullback in Bitcoin coincided with a series of U.S. economic releases that painted a nuanced picture: retail sales fell short of forecasts, producer prices rose less than expected, and manufacturing surveys pointed to softening business conditions. Despite this, major equity indexes remained relatively stable, with the S&P 500 edging up 0.4% and the Nasdaq finishing mostly unchanged.
Bitcoin’s price briefly dipped to around $101,000 before recovering above $103,000, marking a modest decline over 24 hours. In contrast, altcoins bore the brunt of the selloff, as shown by a 3% drop in the CoinDesk 20 Index. Tokens such as Aptos (APT), Avalanche (AVAX), and Uniswap (UNI) each declined between 6% and 7%.
Market analysts are interpreting the current dip as a routine correction within an ongoing bullish trend. According to Ruslan Lienkha, head of markets at YouHodler, the recent U.S.-China tariff delay and shifting equity market momentum led traders to lock in profits, impacting risk assets like BTC.
Kirill Kretov from CoinPanel emphasized that price movements under 5% are often noise, amplified by low liquidity conditions that magnify volatility. He suggested that the retracement likely reflects profit-taking rather than a reversal.
From a longer-term perspective, Vetle Lunde of K33 Research noted that Bitcoin’s derivatives market is displaying cautious positioning, distinct from the exuberance seen before prior market peaks. This could signal room for further upside.
Steno Research highlighted the role of private credit expansion in the U.S. and Europe as a key driver of this cycle’s crypto rally, contrasting it with past bull runs fueled by central bank money printing. The gradual easing of global financial conditions, aided by a weakening dollar, is expected to sustain positive momentum into early summer.
Looking ahead, experts warn that the favorable environment might shift by late July or August as monetary easing winds down, but for now, Bitcoin’s hold above $100,000 and improving fundamentals suggest that the rally has not run its course.
