Bitcoin’s upward momentum has taken a breather, with the price stalling just below the $110,000 mark. Yet, despite macroeconomic jitters and a cautious market environment ahead of key U.S. economic data, institutional demand for BTC remains impressively strong.
A Temporary Stall, Not a Setback
On May 26, Bitcoin (BTC) hovered around $109,425 after failing to maintain levels above $110,000. Market participants initially found some relief after U.S. President Donald Trump postponed his planned 50% tariffs on imports from the European Union. This move injected optimism into European equities—but Bitcoin didn’t follow suit.
Still, this price pause hasn’t shaken bullish conviction. Many traders believe this is simply a consolidation phase rather than a reversal. BTC has shown resilience in the face of repeated economic uncertainty, and data suggests strong hands continue to dominate the scene.
Derivatives Tell a Bullish Story
Evidence from the futures market reinforces this outlook. On May 26, the annualized premium on BTC two-month futures rose to 8%, up from 6.5% a day earlier. While this isn’t the exuberance we saw in December 2024—when the futures premium spiked to 20% as BTC broke the $100K barrier—it’s a solid sign of growing confidence among leveraged traders.
The options market, too, paints a similar picture. A negative 6% delta skew in 30-day BTC options at Deribit indicates that traders are favoring call (buy) options over puts (sell), which is a typical sign of bullish expectations. As this skew edges closer to neutral, it reflects a more balanced market while still leaning optimistic.
Institutional Appetite Is Undeniable
Behind the scenes, institutions are loading up on Bitcoin, seemingly unbothered by short-term price fluctuations. Michael Saylor’s firm, Strategy (formerly MicroStrategy), added $427 million worth of Bitcoin between May 19 and May 25. Their average purchase price? A substantial $106,237 per coin.
This institutional buying trend doesn’t stop there. U.S.-listed spot Bitcoin ETFs recorded another $2.75 billion in net inflows during the same week. Even legacy financial institutions are warming up. JPMorgan, which once held a notably anti-Bitcoin stance, announced on May 19 that it would allow its clients to access spot BTC ETFs—marking a pivotal shift in sentiment. While JPMorgan isn’t yet offering custody services or official endorsements, the move opens up crypto exposure to its massive client base, which holds an estimated $6 trillion in deposits.
What Comes Next?
Despite the momentum, traders are wary of broader macroeconomic triggers. Nvidia’s earnings report on May 28 could play a key role in influencing broader risk sentiment. Meanwhile, the release of the Richmond Fed manufacturing index (also on May 28) and the PCE inflation data on May 30 will provide further clarity on the U.S. economy’s direction.
The U.S. financial markets were closed on May 26 for Memorial Day, so any market optimism stemming from the postponed EU tariffs has yet to be fully reflected in price action. Still, recent softness in mortgage demand—a 5.1% drop in applications last week—has left investors cautious about potential economic headwinds, including recession risks and mounting government debt.
Final Thoughts
Bitcoin might be taking a short break near $110,000, but the overall structure remains firmly bullish. Strong institutional inflows, healthy derivatives activity, and growing mainstream acceptance are building a strong foundation. With key economic data on the horizon, BTC could soon have the fuel it needs to test—and possibly break—its all-time high of $111,957.
