Bitcoin Holds Steady Near $109K as Memorial Day Lull Meets EU Tariff Reprieve
Trading activity was muted Monday with U.S. markets closed for Memorial Day, but global sentiment improved following a temporary suspension of new EU tariffs announced by former President Donald Trump.
Bitcoin (BTC) briefly touched $109,000 in thin trading after a mild weekend upswing, retreating slightly from last week’s all-time high but still up 1.7% over the past 24 hours.
Despite the calm in U.S. markets, European equities rallied following Trump’s decision to postpone a proposed 50% tariff on European goods until July 9. The tariff announcement on Friday had rattled risk assets, including crypto, but the delay helped stabilize markets.
Altcoins Edge Higher on Macro Reversal
Uniswap (UNI) led altcoin gains among the CoinDesk 20 index — which excludes stablecoins, memecoins, and exchange tokens — with a 6.6% rise. Chainlink (LINK) and Avalanche (AVAX) also advanced, gaining 3.3% and 3.4%, respectively.
Short-Term Holders Cash In as Market Cools
Analysts at Bitfinex warn that bitcoin may be entering a consolidation phase after a nearly 50% surge from April lows. With profit-taking intensifying, the market could face temporary headwinds.
Short-term holders have realized $11.4 billion in profits over the last 30 days — a dramatic increase from $1.2 billion in the prior month — potentially capping BTC’s near-term upside unless offset by new capital inflows.
“At current levels, there’s a real risk that selling pressure from profit-takers outpaces fresh demand,” Bitfinex noted. “Without sustained inflows, price momentum could stall or reverse.”
The key level to watch is $95,000 — the average cost basis for short-term holders — which could act as critical support in the event of a deeper correction. BTC dipped as low as $106,000 over the weekend, and analysts say the coming days will be pivotal in determining whether that marks a local bottom or signals a broader pullback.
Despite short-term uncertainty, strong fundamentals remain intact. U.S.-listed spot bitcoin ETFs have attracted $5.3 billion in net inflows so far in May. Combined with subdued volatility and a lack of speculative excess, this points to a healthy base for a continued rally into Q3, Bitfinex concluded.
