Bitcoin has rebounded strongly—up more than 50% from its March lows—after a steep 32% correction from January’s peak.
Now trading near $111,880, BTC is consolidating in what Bitfinex Alpha describes as a “healthy phase” following its rally. But with such significant gains, profit taking becomes a real risk.
According to the latest Bitfinex Alpha report (May 26, 2025), this current consolidation is supported by ETF inflows, spot market strength, and positive net realized cap growth.
These indicators point to structural buying rather than short-lived speculative activity. Despite rising macroeconomic uncertainty—including President Trump’s proposed 50% tariffs on EU goods—Bitcoin has remained resilient, suggesting it’s increasingly being viewed as a macro-sensitive, conviction-led asset.
Institutions and States Back Bitcoin
Institutional support is deepening, according to the report. Japanese firm Metaplanet added $104 million worth of BTC to its balance sheet, while Michigan introduced pro-crypto legislation, joining a wave of U.S. states advancing crypto-forward policies. Publicly traded firms including Strategy, Semler Scientific, and Metaplanet acquired more than 8,800 BTC last week, pushing Strategy’s total holdings to over 2.7% of all Bitcoin in circulation.
Key Price Levels and Market Dynamics
Bitfinex analysts note that Bitcoin’s ability to stay above $95,000, the cost basis of short-term holders, is crucial. Over $11.4 billion in short-term profits have already been realized, and while this may create short-term supply overhang, the 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 leads to 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 now exceed 4.5% and 5%, respectively, reflecting growing fears over debt sustainability, inflation, and fiscal instability. The bond market’s recent behavior, including a steepening yield curve, is being interpreted 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.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/profit-taking-ahead-as-bitcoin-consolidates-at-111000-warns-bitfinex/