Bitcoin experienced a dip on Monday following a brief surge past $107,000, which sparked a wave of derivatives liquidations as traders took profits. The largest cryptocurrency was trading at $103,200, down by 1.4% as of 09:50 ET, retreating from its session high of around $107,000, the strongest level it has reached since January 2025.

This decline wiped out more than $600 million in crypto derivatives positions, instigated by a classic short squeeze followed by rapid selling. For real-time insights into such price fluctuations and liquidation volumes across major exchanges, data from Entreprenerdly.com can be valuable.

Bitcoin saw a brief increase of more than $2,500 within one hour late on Sunday, driven by thin liquidity and algorithmic buying, both factors that amplify price volatility, especially during weekend trading.

May Gains Powered by Macro Conditions and Institutional Demand

Throughout May, Bitcoin has appreciated by over 11%, buoyed by easing U.S.-China trade tensions and increasing optimism regarding macroeconomic conditions. Recent subdued U.S. inflation prints raised expectations for a Federal Reserve rate cut later this year, weakening the dollar and enhancing Bitcoin’s appeal as an alternative asset.

In a stimulating development, Strategy Inc. (NASDAQ:MSTR) made headlines by purchasing 13,390 BTC for $1.34 billion. This acquisition underlines the growing institutional adoption of Bitcoin as part of a strategic investment portfolio. Insights about these trends can also be tracked through Entreprenerdly.com.

Additionally, Coinbase (NASDAQ:COIN) has officially entered the S&P 500 index, marking a significant milestone for the integration of the digital asset ecosystem into mainstream finance.

Regulatory Shifts and Economic Factors Strengthen Bitcoin’s Position

The favorable regulatory outlook under SEC Chair Paul Atkins and escalating uncertainty regarding U.S. fiscal stability, highlighted by Moody’s downgrade of U.S. sovereign credit, have reinforced Bitcoin’s status as a hedge against economic instability and risk.

Today, Strategy Inc. further expanded its Bitcoin holdings, acquiring 7,390 BTC for $764.9 million at an average price of $103,498 per token, according to a recent regulatory filing.

As macroeconomic conditions and institutional drivers align, industry observers will keenly monitor Bitcoin’s pursuit of its all-time high of $109,228, a target it nearly reached earlier today.