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Bitcoin Holds Above $105K as CryptoQuant Flags Possible Overheating in Market
As the Asian trading session begins, Bitcoin (BTC) remains steady, trading just above the $105,000 mark. Over the weekend, BTC saw minimal price movement, shifting only 0.4%, accompanied by subdued volume.
Despite a broadly bullish market environment, CryptoQuant’s latest analysis highlights signs that Bitcoin’s recent rally could be reaching an “overheated” state. Demand for BTC has surged to 229,000 coins over the past month, nearing the December 2024 high of 279,000. At the same time, whale wallets have grown by 2.8%, a trend that often signals a potential slowdown in buying activity.
These developments suggest the surge that drove Bitcoin to an all-time high near $112,000 might be nearing a pause.
The report identifies $120,000 as a critical resistance level, corresponding with the upper band of the Traders’ On-chain Realized Price. At this threshold, unrealized gains hit around 40%, a historic signal for potential market tops.
CryptoQuant’s “Bull Score Index” remains optimistic at 80, reflecting ongoing buying pressure. However, expanding profit-taking and slowing accumulation may lead to a short-term consolidation phase before the next upward move.
In Other News
James Wynn Liquidated After $17M Loss, Promises to Bounce Back
High-stakes trader James Wynn suffered a total liquidation over the weekend, wiping out more than $17 million and leaving his account balance at a mere $23. Wynn, known for bold leveraged bets on Bitcoin and various altcoins, faced his largest blow from a massive $1.25 billion BTC long position that collapsed as prices dropped below $105,000 amid geopolitical turmoil.
Despite the setback, Wynn remains unfazed, posting on X: “I’ll run it back, I always do. And I’ll enjoy doing it. I like playing the game. I took a large and calculated bet at making billions.”
Brazilian Fintech Méliuz Plans $78M Equity Raise to Boost Bitcoin Holdings
Brazil’s Méliuz announced plans to raise up to $78 million via a public stock offering, aiming to invest all proceeds in Bitcoin and strengthen its position in the crypto space.
Following the announcement, Méliuz’s shares fell over 8%. The offering includes 17 million shares, with potential to expand to 51 million, plus subscription warrants granting investors rights to purchase stock at set prices later.
Méliuz, which serves over 30 million users with cashback and financial services, currently holds 320.2 BTC and has previously dedicated 10% of its cash reserves to Bitcoin. Trading for the warrants will begin June 16, with finalization by June 18.
NYC Comptroller Rejects Mayor Adams’ ‘BitBond’ Plan Over Fiscal Concerns
New York City Comptroller Brad Lander has criticized Mayor Eric Adams’ proposal to issue bitcoin-backed municipal bonds, calling the plan “legally dubious and fiscally irresponsible.”
Lander warned that the volatility of cryptocurrencies makes them unsuitable for funding essential city projects like infrastructure and affordable housing.
While Mayor Adams has been a vocal crypto supporter — converting his own salary into digital assets and forming an advisory council — the Comptroller cautioned that tax and regulatory hurdles would likely scuttle the proposal and damage the city’s credit standing.
Market Overview
- Bitcoin (BTC): Rebounded strongly from lows around $103,800 to just over $105,300 on increased volume.
- Ethereum (ETH): Showed bullish momentum, rising from $2,472 to $2,527 amid heavy buying.
- Gold: Rose 0.6% to $3,311 as geopolitical risks and tariff concerns keep demand elevated.
- Nikkei 225: Fell 0.89%, reflecting mixed market reactions in Asia following new steel tariffs.
- S&P 500 Futures: Slid slightly on Sunday after May’s strong gains, with uncertainty around U.S. tariff policies lingering.
