Bitcoin (BTC) Is Stuck Below $110,000 Awaiting US Economic Clarity and Nvidia's Earnings Cap Risk Appetite

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice.

Key takeaways:

* Bitcoin (BTC) price remained below the $110,000 mark on May 26 amid macroeconomic uncertainty and Nvidia's earnings, keeping traders cautious about new all-time highs.

* Stellar (XLM) price showed strength with a 3.6% rally after President Trump postponed retaliatory European Union tariffs.

* Bitcoin futures premium remained in the neutral range of 5% to 10%, while institutional interest in Bitcoin continued to grow.

Bitcoin price failed to hold above the $110,000 level on May 26, even as European stock markets responded positively to President Donald Trump postponing his planned 50% tariffs on European Union imports.

The broader market risk appetite will now depend partly on Nvidia's (NVDA) earnings report on May 28, and anticipation for this could explain why Bitcoin is yet to set a new all-time high, despite trading just 2.6% below its record high of $111,957 on May 25.

Bitcoin options markets are hinting at a higher probability of upward movement, which suggests that whales and market makers remain confident.

The negative 6% Bitcoin options delta skew indicates that put (sell) options are trading at a discount, a typical characteristic of bullish markets. Readings closer to zero reflect a more balanced demand between put and call (buy) options, a trend which was observed on May 25.

It’s likely that the persistent institutional demand for Bitcoin is gradually shifting the risk perception among the world’s largest investment firms. Michael Saylor’s firm, Strategy, purchased $427 million worth of Bitcoin between May 19 and May 25, at an average price of $106,237. Meanwhile, spot Bitcoin exchange-traded funds (ETFs) saw another $2.75 billion in inflows during the same period.

During JPMorgan’s Annual Investor Day on May 19, CEO Jamie Dimon announced that the bank would finally allow clients to purchase spot Bitcoin ETFs. While the move does not include custody or official recommendations of cryptocurrencies, it opens the door to indirect Bitcoin exposure for the bank’s $6 trillion in customer deposits.

Related: Bitcoin’s new highs may have been driven by Japan bond market crisis

US markets are closed on May 26 in observance of the Memorial Day holiday. As a result, any optimism stemming from the delayed US–EU tariffs may be tempered by ongoing concerns surrounding US government debt and the threat of a potential economic recession. The recent 5.1% drop in MBA Mortgage Applications for the week ending May 23 prompted traders to adopt a more cautious stance.

While Bitcoin derivatives metrics remain healthy, upcoming economic data will be critical for market sentiment. Investors are closely watching the Richmond Fed manufacturing index due on May 28, followed by the PCE inflation data on May 30. These indicators will likely influence risk appetite and the chances of Bitcoin breaking above the $112,000 mark in the short term.