Profit Taking Ahead as Bitcoin Consolidates at $111,000, Warns Bitfinex

Bitcoin has rebounded strongly—up more than 50% from its March lows—after a steep 32% correction from January’s peak.

Bitcoin (BTC) has rebounded impressively from March lows, gaining over 50% from the 32% correction seen from January’s peak.

Now trading around $111,880, BTC is consolidating in what Bitfinex Alpha calls a “healthy phase” after its rally. However, with such significant gains, profit-taking becomes a real risk.

According to the latest Bitfinex Alpha report (May 26, 2025), the current consolidation is being supported by ETF inflows, strength in the spot market, and positive net realized cap growth.

These indicators suggest structural buying rather than short-lived speculative activity. Despite increasing macroeconomic uncertainty—including President Trump’s proposed 50% tariffs on EU goods—Bitcoin has shown resilience, hinting at it being increasingly viewed as a macro-sensitive, conviction-led asset.

Institutions and U.S. States Push Crypto Agenda

Institutional support is deepening, the report notes. Japanese firm Metaplanet added $104 million worth of BTC to its balance sheet, while Michigan introduced pro-crypto legislation, joining several U.S. states advancing crypto-friendly policies. Publicly traded firms—Strategy, Semler Scientific, and Metaplanet—acquired over 8,800 BTC last week, pushing Strategy’s total to over 2.7% of all Bitcoin in circulation.

Key Price Levels and Market Dynamics

Bitfinex analysts highlight the importance of Bitcoin staying above $95,000, the cost basis for short-term holders. Over $11.4 billion in short-term profits have already been realized, which may create short-term supply overhang, though ETF bid strength and market maturity could balance that out.

With low volatility, growing spot premiums, and a stronger base of long-term holders, the next few weeks will likely determine whether this consolidation paves the way for a new leg higher in Q3 or marks a local top.

Macro Turmoil and Market Signals

Outside of crypto, rising long-term U.S. Treasury yields and a weakening dollar signal broader financial stress. Yields on 10-year and 30-year bonds have now crossed 4.5% and 5%, respectively, reflecting growing concerns over debt sustainability, inflation, and fiscal instability. The bond market’s recent behavior, including a steepening yield curve, is being viewed less as a sign of growth and more as a warning of systemic risk.

Conclusion

According to Bitfinex Bitcoin’s fundamentals appear strong, but with massive gains behind it and macro risks ahead, investors should watch for potential profit-taking and short-term corrections. Still, long-term demand from institutions and evolving global crypto adoption paint a bullish picture for what may come next.