Bitcoin (BTC) continues to exhibit on-chain power regardless of a protracted interval of worth compression between $100,000 and $105,000.
In accordance with Constancy Digital Belongings’ VP of analysis, Chris Kuiper, the flagship crypto stays in its “Acceleration Part,” a interval characterised by elevated pockets profitability and volatility, at the same time as derivatives exercise dampens upward momentum.
Bitcoin closed at $104,119 on Might 13, with 99% of addresses in revenue. Constancy information reveals that 10 days in Might have certified as high-profit, high-volatility periods. Traditionally, this part has aligned with breakout actions, together with the surge that adopted the US election in late 2020.
Regardless of these circumstances, Bitcoin has been unable to decisively breach its higher resistance ranges, with closing costs largely contained inside a slim $94,000 to $104,000 band all through the primary half of Might.
Derivatives exercise creating headwinds
In accordance with a Might 16 report by CryptoQuant contributor Darkfost, the restrained worth motion stems from structural pressures within the derivatives market.
The report highlighted that cumulative internet taker quantity, a measure of aggressive buying and selling move, has remained damaging since Bitcoin reclaimed the $100,000 degree. This imbalance reveals that quick positions have outweighed longs, producing sustained promoting strain.
The bearish positioning signifies that merchants are skeptical of a near-term transfer to new all-time highs and are actively betting in opposition to additional upside. So long as this imbalance persists, Bitcoin’s upward potential stays capped regardless of favorable circumstances in spot and on-chain markets.
Value stagnation within the presence of bullish fundamentals shouldn’t be unprecedented. Nevertheless, even sturdy community indicators will be muted quickly when by-product flows overpower spot accumulation.
The present divergence between derivatives exercise and on-chain profitability highlights the friction in Bitcoin’s worth discovery course of.
Bitcoin volatility hits report low vs. gold
Bitcoin’s muted worth motion has additionally resulted in a historic compression of volatility, which has hit ranges final seen greater than 10 years in the past.
VanEck’s head of digital belongings analysis, Matthew Sigel, famous on Might 16 that Bitcoin’s 30-day volatility has dropped under gold’s for the primary time since information monitoring started.
Based mostly on Bloomberg terminal metrics, the BBR/GC1 ratio is now at 0.857, its lowest degree over a decade.
Whereas derivatives positioning stays a near-term barrier, historic patterns recommend that extended intervals of volatility suppression have usually preceded giant directional strikes.
Whether or not that materializes once more is dependent upon shifts in taker move, macro circumstances, and liquidity circumstances.
On the time of press 1:56 am UTC on Might. 17, 2025, Bitcoin is ranked #1 by market cap and the value is down 0.55% over the previous 24 hours. Bitcoin has a market capitalization of $2.05 trillion with a 24-hour buying and selling quantity of $44.01 billion. Be taught extra about Bitcoin ›
On the time of press 1:56 am UTC on Might. 17, 2025, the whole crypto market is valued at at $3.28 trillion with a 24-hour quantity of $109.93 billion. Bitcoin dominance is presently at 62.52%. Be taught extra in regards to the crypto market ›
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