Bitcoin bounced back above $103,000 on Thursday after briefly testing the $100,000 threshold earlier in the day.

Following a prolonged surge that propelled Bitcoin (BTC) close to all-time highs, the market took a breather as traders locked in profits. This temporary pause came amid a stream of U.S. economic data releases that showed mixed signals: April retail sales underperformed, producer prices increased less than expected, jobless claims remained steady, and manufacturing activity softened according to the NY Empire State and Philadelphia Fed surveys. Despite these reports, traditional equity markets held firm, with the S&P 500 climbing 0.4% and the Nasdaq finishing largely unchanged.

Bitcoin dipped to around $101,000 in early U.S. trading before recovering to above $103,000, marking a modest decline over the 24-hour period.

Altcoins struggled more significantly, with the CoinDesk 20 Index dropping 3%. Tokens like Aptos (APT), Avalanche (AVAX), and Uniswap (UNI) saw steep declines ranging from 6% to 7%.

Despite the dip, market experts advise investors to view this as a normal corrective phase rather than a shift in trend.

Ruslan Lienkha, Chief of Markets at YouHodler, described the drop as a “healthy correction” within a broader bullish trend, attributing it to profit-taking following the easing of U.S.-China trade tensions.

“Profit-taking amid reduced momentum in equities has impacted riskier assets, including Bitcoin,” Lienkha explained.

Kirill Kretov, trading automation specialist at CoinPanel, added that price movements below 5% are typically market noise, amplified by thin liquidity and traders securing recent gains.

Looking beyond the short-term volatility, analysts see no signs of an impending peak.

Vetle Lunde, senior analyst at K33 Research, noted that Bitcoin recently emerged from an extended period of conservative funding rates, similar to previous phases marked by caution rather than exuberance.

“This pattern suggests defensive positioning among traders, not the frenzy that precedes major market tops,” Lunde said, optimistic about Bitcoin’s potential to set new records while maintaining levels above $100,000.

According to Steno Research, the current momentum is driven less by central bank liquidity injections and more by a subtle expansion of private credit in the U.S. and Europe. This contrasts with past bull runs fueled by quantitative easing and expansive money supply growth.

“While China’s liquidity efforts get much attention, the quieter growth in Western bank credit is the real engine behind this rally,” wrote Samuel Shiffman.

Forward-looking indicators signal improving global financial conditions through the summer, largely due to a weakening U.S. dollar, which historically supports higher Bitcoin prices.

“We expect the positive environment to continue through June and into early July,” Shiffman said, “but caution is warranted as easing conditions may peak around August.”