The cryptocurrency market has experienced a brief period of upward movement, only to shift downwards once again, indicating a critical juncture. Over the past 24 hours, nearly all of the top 100 cryptocurrencies have recorded declines. Market capitalization across the sector has fallen by 3%, now sitting at $3.41 trillion. Total trading volume remains at $89 billion, which is below typical levels for the market.
TLDR:
Most cryptocurrencies have observed further decreases after a temporary increase;
Volatility in Bitcoin (BTC) is on a downward trend;
Even if Bitcoin rallies, it is unlikely to breach the $110,000 mark at this stage;
Sentiment has shifted towards bearish in the short term;
U.S. spot Bitcoin ETFs have seen two consecutive days of inflows, while spot Ethereum (ETH) ETFs have experienced inflows for thirteen days;
The rally appears sustainable in the short term but is vulnerable to reversal.
Crypto Winners & Losers
As of the latest updates, nearly all the top 10 cryptocurrencies, except for one, are experiencing losses. Bitcoin (BTC) has decreased by 0.7% and is currently trading at $104,737.
Ethereum (ETH) has seen a 0.5% increase, erasing any gains from earlier in the day, now priced at $2,614.
The lone gainer in the top crypto category is Tron (TRX), which saw an increase of 1.7%, now valued at $0.2731. Conversely, Dogecoin (DOGE) saw the steepest decline, dropping 3.5% to $0.1892.
Only five out of the top 100 cryptocurrencies have registered price increases within the last day, with Tron again leading this category, followed by Tokenize Xchange (TKX), which rose by 0.9% to $31.37. In contrast, Monero (XMR) suffered the largest drop, decreasing by 8.1% to $318.
According to data from Glassnode, Bitcoin’s ascent to its all-time high has encountered significant resistance, attributed to profit-taking by long-term holders and a reduction in buying momentum. Strong accumulation zones from previous cycles have now shifted into selling zones.
Data indicate that major Bitcoin holders, after initially showing distribution tendencies, are returning to accumulation. All wallet cohorts exhibit varying degrees of buying activity, particularly the groups holding between 10–100 BTC and less than 1 BTC, both showing a score of 1.0, the highest possible level. pic.twitter.com/hndK1F92qk
— glassnode (@glassnode) June 5, 2025
The report notes, “The market seems to be at a crossroads, influenced by heightened selling pressure, matured bullish momentum, and demand that will need to prove its resilience.” Analysts believe the forthcoming weeks will be pivotal in determining if the market is entering a consolidative phase or approaching a broader peak.
BTC Price Likely to Face Resistance at $110,000
Nick Forster, the Founder of decentralized on-chain options platform Derive.xyz, indicates that market makers are presently short on gamma. To sustain their hedging strategies, they need to purchase more Bitcoin as prices rise, creating a feedback loop that enhances demand.
However, Forster notes a significant “gamma hole” at the $110,000 level, where market makers would be compelled to halt purchases as they become gamma-neutral.
“This implies that even with a potential rally, Bitcoin price is unlikely to exceed $110,000,” he adds.
Furthermore, the probability of Bitcoin exceeding $125,000 before the end of September has decreased from 18% to 11% in just one week. This decline is indicative of reduced price levels and diminished implied volatility, compressing the range of potential outcomes.
Conversely, the likelihood of Ethereum finishing above $3,000 by the end of September has risen slightly from 22% to 24%.
Source: derive.xyz
In the meantime, long-dated (180-day) Bitcoin volatility has experienced a downward trend, dropping from 56% to 46% over the past two months. Forster attributes this reduction to Strategy (formerly MicroStrategy) raising funds and selling calls in the market.
Source: derive.xyz
Additionally, Forster notes that over 57% of all Bitcoin contracts traded on Derive.xyz are puts, reflecting a bearish sentiment among traders regarding Bitcoin’s immediate future. “Market sentiment has shifted towards a neutral to slightly bearish perspective,” he explains.
Key Levels & Upcoming Events
Bitcoin is currently valued at $104,737, having once again failed to maintain the $105,000 support level. It reached an intraday high of $105,910 before pulling back. Compared to its all-time high of $111,814, it remains down by 6.1%. Over the past week, Bitcoin has decreased by 2.8% but has increased by 10.9% month-over-month.
Ethereum’s intraday high registered at $2,667. It has declined by 4.3% in the past week but is up 45.2% over the month, outperforming Bitcoin in that timeframe.
Moreover, the Fear and Greed Index has retreated further into neutral territory, now reflecting a bearish sentiment at 55. This follows a spike to extreme greed at 76, just a day post-Bitcoin’s all-time high. The current sentiment indicates caution in the market, teetering between fear and greed based on ongoing developments and investors’ reactions.
On June 4, U.S. Bitcoin spot ETFs recorded a net inflow for the second consecutive day, adding $86.92 million to a total of $44.57 billion. BlackRock led the inflow with $283.96 million, whereas Fidelity reported a loss of $197.04 million.
Simultaneously, U.S. Ethereum spot ETFs have sustained their inflow streak for thirteen days, gaining an additional $56.98 million on June 4, with BlackRock once again at the forefront with $73.18 million.
The cryptocurrency market remains responsive to U.S. news. Recent data from Automatic Data Processing (ADP) revealed the creation of 37,000 jobs, marking the slowest hiring rate in two years in the private sector.
In response to these developments, Donald Trump has reiterated his call for Federal Reserve Chair Jerome Powell to consider interest rate cuts.
A reduction in interest rates would likely benefit the crypto market, as lower borrowing costs tend to attract investment into riskier assets. However, such a move could also lead to inflationary concerns.
Quick FAQ
Why did crypto move against stocks today?
The cryptocurrency market registered a minor overall decrease in the past 24 hours, contrasting with the stock market’s mixed performance. The S&P 500 rose by 0.0074%, the Nasdaq-100 increased by 0.27%, while the Dow Jones Industrial Average fell by 0.22%. Currently, the two markets do not appear to be moving in tandem. Stocks responded to Donald Trump’s renewed calls for a Federal Reserve rate cut, which can stimulate stock prices but may also contribute to inflationary pressures.
Is this dip sustainable?
Experts contend that the recent declines in market capitalization and the prices of major cryptocurrencies may represent a typical post-all-time-high correction. However, they emphasize that the market stands at a crucial point and remains sensitive to macroeconomic factors, which could potentially exacerbate a short-term pullback into a prolonged bearish trend.
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