Bitcoin Maintains Bullish Tone Amid Signs of Market Overheating, Says CryptoQuant
Bitcoin (BTC) is trading just above $105,000 as the Asian markets kick off their week, showing little movement over the weekend with only a 0.4% price change and subdued trading volume.
Despite the continued bullish environment, a recent CryptoQuant report points to signs that the Bitcoin market may be “overheating.” According to the data, demand for Bitcoin has surged to 229,000 BTC over the last 30 days, approaching the December 2024 peak of 279,000 BTC. Meanwhile, whale holdings have increased by 2.8%, a trend that often signals a slowdown in accumulation.
These indicators suggest the current rally, which pushed BTC to an all-time high of $112,000, could be approaching a near-term peak.
CryptoQuant identifies $120,000 as the next key resistance, aligned with the upper boundary of the Traders’ On-chain Realized Price. At this level, unrealized profits would reach 40%, a historical marker for local tops.
Though CryptoQuant’s “Bull Score Index” remains strong at 80, implying ongoing bullish momentum, rising profit-taking and decelerating demand growth may mean traders will see a period of consolidation before Bitcoin pushes higher again.
News Roundup
James Wynn Liquidated After $17M Loss, Vows to ‘Run it Back’
James Wynn, the high-leverage trader known for his outsized bets on Hyperliquid, has been fully liquidated, with just $23 left in his account after losing over $17 million. Wynn gained notoriety for massive positions in Bitcoin, memecoins like PEPE, and even lesser-known tokens such as FARTCOIN.
His most dramatic loss came from a $1.25 billion long BTC position that plunged as prices fell below $105,000 amid global geopolitical uncertainty, wiping out over $37 million.
Despite the heavy losses, Wynn remains undeterred. An account linked to him posted on X, “I’ll run it back, I always do. And I’ll enjoy doing it. I like playing the game. I took a large and calculated bet at making billions.”
Brazil’s Méliuz Announces $78M Equity Raise to Expand Bitcoin Holdings
Brazilian fintech company Méliuz plans to raise up to $78 million through a public equity offering, with all proceeds earmarked for Bitcoin purchases to strengthen its treasury holdings.
The announcement, however, led to an 8% drop in Méliuz’s shares. The offering includes 17 million common shares, potentially increasing to 51 million, along with subscription warrants for future stock purchases.
Méliuz, known for its cashback and financial services platform serving over 30 million users, currently holds 320.2 BTC and committed 10% of its cash reserves to Bitcoin back in March. Trading of the warrants is set to begin June 16, with settlement and issuance finalized by June 18.
NYC Comptroller Pushes Back Against Mayor Adams’ ‘BitBond’ Proposal
New York City Comptroller Brad Lander criticized Mayor Eric Adams’ plan to issue bitcoin-backed municipal bonds, calling the “BitBond” proposal legally questionable and fiscally irresponsible.
Lander expressed concerns that the volatility of cryptocurrency makes it an unreliable funding source for critical city projects such as infrastructure and affordable housing.
Mayor Adams, an active crypto advocate who converts his salary into digital assets and has established a digital asset advisory council, introduced the plan at a Bitcoin conference in Las Vegas.
However, the Comptroller warned that federal tax rules and city regulations would likely make the proposal unworkable, and diverging from dollar-backed borrowing could damage investor trust and the city’s creditworthiness.
Market Snapshot
- BTC: Bitcoin showed resilience, rebounding sharply from $103,813 to $105,305 amid notable volume spikes.
- ETH: Ethereum formed a bullish reversal, climbing from $2,472 to $2,527 on strong buying momentum.
- Gold: Gold gained 0.6% to $3,311, as investors balanced recent pullbacks against central bank demand amid tariff uncertainty.
- Nikkei 225: Japan’s Nikkei 225 fell 0.89%, reflecting mixed Asia-Pacific sentiment following President Trump’s steel tariff announcements.
- S&P 500 Futures: US stock futures dipped Sunday after May’s strong gains, as tariff uncertainties persist following recent court decisions.
