Bitcoin (BTC) Price Recovers Towards $110K, Coinbase (COIN) and Strategy (MSTR) Stocks Jump 2%

Crypto stocks recorded a moderate recovery on Tuesday, with Coinbase (COIN), Strategy (MSTR), and Robinhood Markets (HOOD) recording a nearly 2% rebound.

Key Insights

* Crypto stocks saw a moderate recovery on Tuesday, with Coinbase (NASDAQ:COIN) and Strategy (NASDAQ:MSTR) rising nearly 2% as traders braced for PCE inflation data and monthly crypto options expiry on Friday.

* Bitcoin (BTC) price also saw a decent rebound towards $110K from $108K.

* Bitcoin mining shares also saw a bounce of nearly 3% in premarket trading hours on Tuesday.

Risky assets saw a rebound in the premarket trading hours on Tuesday as traders assessed PCE inflation data and chatted up Trump's plans to buy Bitcoin.

Coinbase (NASDAQ:COIN) and Strategy (NASDAQ:MSTR) stock price rose nearly 3% in the premarket trading hours. Other crypto stocks such as Robinhood Markets (NASDAQ:HOOD) saw over a 2.50% jump.

Bitcoin (BTC) price also saw a decent rebound of 2% from $108K ahead of the much-anticipated Las Vegas Bitcoin Conference. The conference is scheduled from May 27-29, featuring speakers from the Trump Administration and the crypto industry.

Bitcoin Mining & Crypto Stocks Jump Nearly 2%

The move comes as the Bitcoin price rebounded 2% from $108K ahead of the much-anticipated Las Vegas Bitcoin Conference. The conference is scheduled from May 27-29, featuring speakers from the Trump Administration and the crypto industry.

suggest that the Trump family’s media company planned to raise $3 billion to buy Bitcoin and other cryptocurrencies. However, the company later denied plans to raise funds to buy any crypto.

Meanwhile,GameStop (NYSE:GME) stock price rose nearly 2% to $33.75 in the premarket trading hours. Notably, GameStop shares closed 18.98% higher at $33.03 last week, indicating higher anticipation from investors.

Can Bitcoin Hit New ATH During Bitcoin Conference?

The uncertainty in crypto stocks and broader digital assets markets continues to remain high amid the tariff war. While Bitcoin (BTC) price made a new ATH of $111,970 last week, some in the crypto community are eyeing another ATH during the Las Vegas Bitcoin Conference.

However, experts predict higher Bitcoin price volatility and short-term downside risk. According to QCP Capital, institutional demand for spot crypto ETFs helped Bitcoin rally last week. But, the implied volatility held firm, with BTC consolidating between the $107K and $110K range.

“Traders are positioning around headline risk ahead of the Bitcoin Conference in Las Vegas, scheduled for 27 to 29 May. Focus is already building around the event’s speaker line-up, which includes JD Vance, Michael Saylor, Donald Trump Jr., and Eric Trump,” explained QCP.

Last July’s Nashville Bitcoin Conference offers a useful insight when a keynote by Donald Trump resulted in a sharp spike in BTC price. Nonetheless, it was followed by a swift reversal and a nearly 30% decline in BTC within two days.

While the probability of a similar drawdown appears low, traders remain cautious. Moreover, perpetuals’ open interest has declined, and funding rates have normalized. Also, some high-beta retail traders, including James Wynn, have scaled back exposure. QCP predicts a short-term downside in BTC price.

“In our view, BTC is likely to remain range-bound in the near term. Once the event passes and key speeches conclude, front-end vols are expected to compress as risk premia fade.”

Selloff Risks Are High Despite Bullishness

Bitcoin analyst Willy Woo said the broader picture for Bitcoin is bullish, and the risk signal is dropping. He predicts BTC price to $114K if buying continues. However, Woo warned about another profit and the bearish divergences on longer-range charts if capital inflows remain weaker.

Moreover, miners have increased their BTC selloff on crypto exchanges after the ATH. Notably, inflows have doubled from an average of 25 BTC to 50 BTC per day, while historical peaks reach around 100 BTC per day.

This indicates a rise in sales despite being a long way from peak volumes, with the crypto market absorbing the extra supply comfortably. The odds for opening new Bitcoin shorts near the ATH are higher.