Bitcoin structurally strong despite major pullback: Bitfinex analysts

Bitcoin has seen a major pullback from its all-time high of $111,880, as a macroeconomic reversal wipes out futures traders.

Bitcoin ( BTC ) remains strong after a pullback from a major rally, states a report by Bitfinex analysts, released on Monday, June 2. After reaching its all-time high of $111,880 with a 50% rally in just 45 days, the asset has encountered significant macroeconomic pressure.

Notably, reinstated tariffs resulted in a sharp spike in Treasury yields, with 30-year Treasury yields rising above 5 percent. These factors are fueling risk-off sentiment, which is affecting both stocks and Bitcoin. Moreover, the Bitcoin derivatives market, Bitfinex analysts explain, is likely overheated. Still, the report suggests that Bitcoin remains in a strong position.

“Despite the pullback, we believe Bitcoin remains structurally strong. This correction appears to be a healthy reset rather than a breakdown—driven by leverage flushing and profit realisation after one of the sharpest recoveries in crypto history,” Bitfinex report.

Bitcoin faces macro uncertainty, profit taking

Bitfinex analysts note that open interest rose to an all-time high of $49.4 billion, indicating that traders are increasingly hedging their bets and speculating on the asset. In both cases, this suggests that traders are anticipating more volatility.

Adding to this narrative is a decline in consumer spending, driven by growing concerns over the effects of tariffs. At the same time, unrealized profitable positions in Bitcoin have risen to historic levels, likely leading to significant profit taking ahead.

Bitcoin short-term holder realized price | Source: Bitfinex

“On-chain metrics corroborate this: the Relative Unrealised Profit indicator has broken above its +2 standard deviation band, a historically euphoric zone that typically precedes sharp intraday swings and local tops,” Bitfinex report.

Despite these risks, other developments suggest that Bitcoin remains in a strong position. Notably, institutional adoption is picking up, with more and more companies diversifying into Bitcoin. One of them is GameStop, which invested $513 million in BTC, in an effort to diversify from its declining core business.