Bitcoin stalls at $110K but institutional investors continue gobbling up BTC

Bitcoin Pauses at $110K as Institutions Keep Accumulating

Bitcoin’s rally has hit a wall at $110,000, with market momentum waning despite robust institutional demand. While retail interest remains subdued, big players are aggressively buying, signaling confidence in BTC’s long-term potential amidst looming economic data releases.

Market Stagnation and Resistance

On May 26, 2025, Bitcoin struggles to push past $110,000, a key resistance level. Trader Daan Crypto Trades noted on X that the price “lacks momentum” to break through, with declining trading volumes adding pressure. The Relative Strength Index (RSI) on weekly timeframes shows overbought conditions, hinting at a possible correction. Analyst Josh Olszewicz flagged $112,000 as the next critical level, but warned of a potential drop to the $100,000-$102,500 range if support fails. Upcoming U.S. economic reports, including the Richmond Fed manufacturing index on May 28 and PCE inflation data on May 30, could sway market sentiment.

Institutional Demand Surges

Despite the stall, institutional investors are unfazed. Spot Bitcoin ETFs recorded $1.8 billion in net inflows last week, per SoSoValue data, with BlackRock’s IBIT leading at $1.2 billion. The CME Bitcoin futures premium rose to 8%, indicating strong leveraged long positions by institutions. Analyst Skew highlighted on X that this trend is reducing available supply on exchanges, a bullish signal. Hedge funds and asset managers are also increasing exposure, with CoinShares reporting $2 billion in crypto fund inflows for May, predominantly into BTC products.

Retail Interest Lags

Retail participation, however, remains muted. Google Trends data shows search interest for “Bitcoin” at half its 2021 peak, reflecting a lack of FOMO among smaller investors. On X, sentiment is mixed—some users like @CryptoBull express frustration over the “boring” price action, while others see the institutional buying as a precursor to a breakout. Short-term holders are taking profits, with on-chain data from Glassnode showing increased selling pressure at $110,000, which could exacerbate a pullback if retail doesn’t step in.

What’s Next for Bitcoin?

Bitcoin’s near-term trajectory hinges on macroeconomic catalysts and market dynamics. Institutional accumulation is tightening supply, potentially setting the stage for a rally if $110,000 resistance breaks. However, without retail momentum, a correction remains possible. Traders are eyeing the $112,000 level for a bullish continuation, while a drop below $107,000 could signal a deeper retracement. As economic data unfolds, the market’s next move will become clearer.