🕒 Posted on: 6/1/2025 2:00:28 PM UTC

Bitcoin Stalls at $104K as BlackRock Outflows and Global Reserve Doubts Shake Crypto Sentiment

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The cryptocurrency market is at a crossroads as Bitcoin (BTC) hovers around the $104,000 mark, struggling to break out amid mixed signals from institutional investors and macroeconomic uncertainties. Recent outflows from BlackRock’s Bitcoin ETF (IBIT), combined with growing doubts about the U.S. dollar’s dominance as the global reserve currency, have left traders questioning whether BTC is gearing up for a breakout or a deeper correction.

In this article, we’ll analyze the key factors influencing Bitcoin’s price action, including institutional flows, regulatory developments, and macroeconomic trends shaping crypto sentiment.

Bitcoin Price Stalls at $104K: Consolidation or Correction Ahead?

As of June 1, 2025, Bitcoin trades between $103,997 and $104,281, with a market cap of $2.06 trillion. Over the past 24 hours, BTC recorded a trading volume of $15.8 billion, reflecting a tight consolidation phase. Analysts are divided on whether this is a pause before another leg up or the beginning of a deeper pullback.

Key levels to watch:

Support: $100,000 (psychological level)
Resistance: $105,000 (recent high)

A decisive break above $105K could signal renewed bullish momentum, while a drop below $100K may trigger further downside toward $95K.

BlackRock’s IBIT Sees $430M Outflow—Institutional Demand Cooling Off?

One of the biggest surprises in recent days was the sudden $430 million outflow from BlackRock’s spot Bitcoin ETF (IBIT) on May 31—the first major withdrawal after months of consistent inflows. This shift suggests that institutional investors may be taking profits or reassessing their positions amid economic uncertainty.

Why Did Institutions Pull Out?

Profit-taking: Bitcoin has surged over 150% since early 2024.
Macro concerns: Rising doubts about the U.S. dollar’s stability (more on this below).
Regulatory uncertainty: New IRS tax rules and Texas’s proposed SBR law could impact crypto liquidity.

If outflows continue, Bitcoin could face additional selling pressure in the short term.

Jamie Dimon Warns: The U.S. Dollar’s Reserve Status Is at Risk

JPMorgan Chase CEO Jamie Dimon made headlines at the Reagan National Economic Forum by casting doubt on the U.S. dollar’s future as the world’s reserve currency. While many point to China as a challenger, Dimon argued that America’s internal policies pose the biggest threat.

What Does This Mean for Bitcoin?

Historically, Bitcoin has thrived during periods of currency devaluation fears. If confidence in the dollar weakens further:

More institutions may allocate to BTC as a hedge.
Countries like Panama and El Salvador (already pro-Bitcoin) could accelerate adoption.
Long-term demand for scarce assets like Bitcoin could rise significantly.

Crypto Hacks Decline in May—But $244M Still Lost

Despite improved security measures, May saw approximately $244 million lost to crypto hacks, down 39% from April. Notably:

Sui and Cetus recovered $157M through coordinated efforts.
Over 20 major incidents were reported (PeckShield data).

While the decline is positive, security remains a critical concern for institutional adoption.

Ethereum Stalls at $2.7K—Whale Activity Hints at Big Move Ahead

Ethereum (ETH) is consolidating near $2,700, but on-chain data reveals intriguing whale behavior:

Large ETH holders are moving funds to Binance at levels last seen in December 2023—right before a major rally.
A similar accumulation pattern could precede another bullish breakout.

Key ETH levels:

Support: $2,600
Resistance: $2,800 (breakout target)

Hyperliquid (HYPE) Surges 327%—Perps Trading Booms

Decentralized perpetual futures platform Hyperliquid (HYPE) had its best month ever in May:

Cumulative trading volume exceeded $242 billion.
HYPE token hit an all-time high of $39.92, up 327%.

This surge highlights growing demand for decentralized derivatives—a trend that could continue if Bitcoin remains volatile.

Latam Crypto Roundup: Bolivia Bans Crypto Energy Payments, Panama Pushes Adoption

Latin America continues to send mixed signals on crypto regulation:

🇧🇴 Bolivia banned state-owned oil companies from using crypto for energy transactions.
🇵🇦 Panama accelerated Bitcoin-friendly policies despite IMF warnings.
🇸🇻 The IMF approved El Salvador’s economic performance despite its Bitcoin adoption stance.

These developments underscore the region’s polarizing approach to digital assets—some embracing them, others resisting change.

The "Inverse Cramer" Effect Hits Crypto—Traders Profit by Fading Analysts

A new trend dubbed the "Inverse Cramer" effect has emerged in crypto markets—where traders profit by doing the opposite of what prominent analysts like James Wynn suggest (similar to Jim Cramer in traditional markets). Lookonchain data shows that contrarian strategies have yielded millions in profits recently.

Key Takeaway:

Market sentiment can be fickle—sometimes going against the crowd pays off.

Final Thoughts: Will Bitcoin Break Out or Correct Further?

Bitcoin’s current stall at $104K reflects broader uncertainty:
✅ Bullish factors: Potential dollar weakness, long-term ETF inflows, halving supply shock still in play.
⚠️ Bearish risks: BlackRock outflows, profit-taking pressure, regulatory hurdles.

Traders should watch for:
1️⃣ A decisive break above $105K (bullish confirmation).
2️⃣ A drop below $100K (could trigger deeper correction).

Given macro uncertainties and institutional flows shifting rapidly, volatility is likely here to stay—making risk management crucial in the weeks ahead.