Bitcoin could enter a period of lateral movement after a judicial decision on the tariffs of the president of the United States, Donald Trump, but that is not necessarily a bearish signal, according to a cryptographic analyst.
“While the recent increase of more than $ 111,000 was remarkable, the current price action suggests a consolidation phase instead of an imminent break,” said Ochain Founder Options Derive Derive, Nick Forster, to Cointelegraph.
Bitcoin consolidation will help market “digest recent profits”
Forster argued that a consolidation phase could be “a healthy pause” before another “significant ascending movement.” He said this pause will give “market time to digest recent profits and prepare for the next phase.”
Bitcoin (BTC) has increased by 11.59% in the last 30 days, reaching a new historical maximum of $ 111,970 on May 22 before recovering to around $ 105,976 at the time of publication, according to CoinmarketCap data.
What can be the next phase is uncertain. Bitcoin Sminton researcher said that BTC could earn 100% to 200%, with a peak cycle between $ 220,000 and $ 330,000. Meanwhile, Crypto Trader Apsk32 said that a more reasonable goal for 2025 would make Bitcoin reach $ 220,000.
Forster said that the decision of the United States International Court of May 28 of blocking Trump’s radical tariffs when overcoming its authority means that “the immediate concern of inflation induced by trade has been relieved.”
However, the Federal Circuit Court of Appeals ruled on May 29 that Trump could temporarily continue with its tariff regime under a law of emergency powers while appealing the decision of the commercial court.
Forster added that the next interest rate of the United States Federal Reserve on June 18 “will be fundamental.”
Q3 may surprise this year
Forster said that while the third quarter has historically been a “weakest period” for Bitcoin, it can be a different scenario in 2025.
“The potential of favorable regulatory developments and continuous institutional interest can support a stronger performance in the third quarter,” Forster said.
Since 2013, Bitcoin has averaged a 6.03% gain in the third quarter, while the fourth quarter has historically been its strongest quarter, delivering an average yield of 85.42%, according to coinglase data.
Related: Bitcoin can reach $ 200K in 2025 after the ‘obvious’ price rupture signal
Forster also pointed out the significant amount of Spot Bitcoin ETF tickets, which have not been reflected in the spot price.
“Despite the significant entries in the Bitcoin ETFs, in particular more than $ 6.2 billion in the Blackrock Ishares Bitcoin Trust in May, the price of Bitcoin has not experienced a proportional increase,” Forster said.
In the negotiation week that ended only on May 23, Spot Bitcoin ETFS registered a total of $ 2.75 billion in tickets.
“This phenomenon can be attributed to the nature of ETF investments, which often involve institutional investors who seek exposure without an immediate impact on spot market prices,” he added.
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This article does not contain advice or investment recommendations. Each investment and trade movement implies risk, and readers must carry out their own investigation by making a decision.
