The price of Bitcoin (BTC) has experienced a downward trend since reaching $70,300 on May 27, currently hovering around $67,920, a 2% decline over the past 7 days.
The price of Bitcoin (BTC) has experienced a downward trend since reaching $70,300 on May 27, currently hovering around $67,920, a 2% decline over the past 7 days. Despite this, the $66,000 support level has remained robust since May 17, providing some stability for bullish investors who aren't overly concerned by this brief correction.
A key area of interest is the Bitcoin derivatives market. On May 29, the open interest in Bitcoin futures, reflecting the total number of leverage bets, hit a 16-month high, signaling an increased appetite for leveraged positions in BTC.
Shifts in macroeconomic trends have also influenced Bitcoin's performance. The S&P 500 is just 1.2% below its all-time high of 5,342, achieved on May 23, suggesting a strong stock market. Meanwhile, the 5-year Treasury yield has climbed to 4.63% from 4.34% two weeks ago, indicating a move away from fixed-income investments. This trend was underscored by weak demand at a Treasury Department auction on May 28, which pushed benchmark yields to levels that could be concerning for stock investors.
On May 29, the aggregate Bitcoin futures open interest reached 516k BTC, the highest since January 2023, marking a 6% increase over the past week. The Chicago Mercantile Exchange (CME) leads this market with a 30% share, followed by Binance at 22% and Bybit at 15%. This sizable open interest, equivalent to $34.8 billion indicates bullish sentiment, but also poses risks of cascading liquidations if leveraged positions are too high.
Bitcoin's price resilience has been supported by easing regulatory pressures in the United States. Notably, the approval of a spot Ethereum exchange-traded fund (ETF), the Senate's vote to repeal the SEC's proposed SAB 121 accounting rule, and Congress passing the FIT 21 reform, treating most cryptocurrencies as commodities.
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