Before President Donald Trump came up with the idea of a “straight 50% tariff on the European Union” on Friday morning, Bitcoin blasted at $111,000 this week, setting its highest ever high.
BTC optimism had urged analysts to discuss whether the rally was fundamentally different from past rallyings. But again, it was before the President's market tanking news on his social account of truth,
The past hour Bitcoin According to Coingecko, 1.8% fell by 1.8%, changing hands at $108,531.
Ethereum And alt was also late. ETH is down 4% compared to yesterday's price, and is now just over $2,500. XRP has soaked 3.7% compared to yesterday and is currently trading at $2.34.
Analysts felt optimistic about the latest rally. Instead of being driven by speculative overload, many believed that the surge reflected a deeper structural strength supported by institutional flows, tougher market conditions and changing investor behavior.
However, BTC didn't easily win $111,000 this week. It was a temporary slip earlier this week after rebounding to $111,807 early on Friday in Asia in response to a weaker Treasury auction.
In its latest market notes, Singapore-based QCP Capital describes the uptrend as “more structurally robust than the last”, citing reduced leverage, price action that is resilient even after the weaker Treasury auction, and significant divergence from gold that has plateaued nearly $3,300.
“I feel this gathering is different,” they wrote. “We're chasing the momentum with less foam and strengthening the basics.”
said Tracy Jin, COO of Crypto Exchange MEXC Decryption The rally “feels more structurally healthy than the past cycles,” in line with QCP Capital's view that the foundations, not speculation, drive movement.
She pointed out the end of the week on Bitcoin's best week at around $106,500 after six consecutive weeks of profit.
Ginn said the leverage remains low, with futures premiums at just 7%, “compared to a peak above 30% in the overheated market,” and the inflow of over $1.3 billion into Bitcoin ETFs in just five days indicates “institutional demand is leading the bill.”
“Around 50 million Americans currently own Bitcoin compared to 37 million people who own gold,” Jing said, highlighting the growing normalization of Bitcoin as part of mainstream financial holdings.
In contrast, B2Binpay analysts did not focus on the long-term structural rhythm of Bitcoin's price history.
They describe and convey the rally as a continuation of the Bitcoin cyclical pattern. Decryption It's “not unprecedented or abnormal,” but part of a broader trend that is usually marked with a 50% retrace.
However, analysts also warned that the revision phase could still be ahead, and that this cycle is too early for a critical benchmark to previous cycles.
Regarding the increased divergence from gold, B2Binpay said it “speaks more about investor psychology and risk appetite than basic decoupling.”
Traders were already questioning whether Bitcoin had enough momentum to infringe $115,000 in the short term, but Trump's tariff bombing has escalated skepticism.
Myriad is a distributed forecasting platform created by Decrypt's About 24% of parent company Dastan, bettors, thought Bitcoin had a chance to fight over $115,000 on Sunday, May 25th. However, since then, the optimistic crowd has shrunk to just 15.4% of users.
Edited by Stacy Elliott.
