Bitcoin (BTC) briefly fell below $102,000 on Friday, with derivatives markets recording over $300 million in long position liquidations. On-chain data reveals Bitcoin traders took profits exceeding $23 billion this week, signaling increased selling pressure. Meanwhile, a JPMorgan insider confirmed the bank will accept BTC ETFs as collateral for loans. Despite bullish catalysts like Strategy's IPO announcement to raise nearly $100 million for BTC purchases, Bitcoin failed to sustain upward momentum.
Market Sentiment Shifts as Traders Take Profits
BTC dipped to $101,095 amid market volatility, partly influenced by the public feud between former U.S. President Donald Trump and Tesla CEO Elon Musk. The Crypto Fear & Greed Index dropped to 45 (from 57–60 last week), reflecting growing caution among traders.
Key observations:
- Large-scale profit-taking: $23 billion in BTC profits realized between June 2–5 (Santiment data)
- Derivatives market activity: $305 million in long positions liquidated vs. $41 million in shorts
- Long/Short ratio: 0.91 indicates bearish dominance
👉 Explore real-time Bitcoin derivatives data
JPMorgan to Accept Bitcoin ETFs as Loan Collateral
According to a Bloomberg report (June 4), JPMorgan will soon allow clients to pledge Bitcoin ETFs like BlackRock's IBIT as loan collateral. This development:
- Expands institutional adoption of crypto products
- Enables wealth management clients to leverage ETF holdings for liquidity
- May increase demand for regulated crypto investment vehicles
Strategy’s $100 Million Bitcoin Purchase Plan Fails to Lift Markets
Stride (STRD) announced an IPO to raise $979.7 million, with portions allocated to:
- Bitcoin acquisitions
- Working capital
- General corporate purposes
Despite this bullish news, BTC continued consolidating below key resistance levels.
Technical Analysis: BTC May Retest $100,000 Support
Current BTC/USDT price action suggests:
- Resistance: $106,000 (upper FVG boundary)
- Support: $100,000 (psychological level), $97,732 (secondary)
Indicators:
- RSI at 50 (neutral)
- MACD flashing red below neutral line
Potential scenarios:
- Bearish: 4% correction to retest $100,000 support
- Bullish: Break above $106,794 could target ATH near $111,980
👉 Track Bitcoin's key support/resistance levels
FAQ: Bitcoin Market Dynamics
Q: Why did Bitcoin drop despite institutional adoption news?
A: Profit-taking by large holders ($23B+) outweighed bullish catalysts, creating sell pressure.
Q: How does JPMorgan’s ETF collateral policy affect crypto markets?
A: It legitimizes BTC ETFs as financial instruments while providing liquidity options for institutional investors.
Q: What’s the significance of the $100,000 level?
A: A psychological support zone where buy orders typically accumulate; breaking below could trigger further declines.
Q: How does the Trump-Musk feud impact Bitcoin?
A: Indirectly affects risk sentiment via NASDAQ volatility, given BTC’s correlation with tech stocks.
Disclaimer
This content contains forward-looking statements involving risks and uncertainties. Markets and instruments profiled are for informational purposes only, not investment advice. Conduct thorough research before making financial decisions. All investments involve risk, including potential principal loss.