Key takeaways:

Bitcoin could turn parabolic if prices move above $115,000 to liquidate more than $7 billion in short positions.

Onchain indicators enter overheated territory, suggesting prolonged profit-taking from BTC investors.

Bitcoin (BTC) showed strength on May 27, briefly tagging $110,700 after a strong US equities market open and the Trump Media and Technology Group’s announcement that it would raise $2.5 billion for a Bitcoin treasury.

Bitcoin’s bullish momentum aligns with the favorable US financial conditions, as noted by Ecoinometrics. The macroeconomic-focused Bitcoin newsletter highlighted that the National Financial Conditions Index (NFCI) shows a rapid shift to ultra-loose territory after a tightening phase in February 2025.

The NFCI, published by the Federal Reserve Bank of Chicago, tracks stress in the financial system by aggregating measures like credit spreads, leverage, and funding conditions. When the index moves into looser territory, it reflects easier access to capital and reduced market stress—conditions that typically encourage risk-taking behavior among investors.

For high-beta assets like Bitcoin, such periods often coincide with price rallies as capital flows into speculative markets.

US National Financial Conditions Index. Source: Ecoinometrics

Ecoinometrics mentioned that within four weeks, liquidity has returned, creating a supportive macroeconomic environment for risk assets like Bitcoin. The newsletter noted,

“That’s the kind of macro backdrop where Bitcoin thrives. Bitcoin’s rally to new highs didn’t come out of nowhere. It’s tracking the same pattern we saw since 2023: easing conditions → capital rotation → risk-on.”

With Bitcoin just 2% away from its all-time high price, data from CoinGlass indicates that the probability of a short-squeeze remains high due to significant sell-side liquidity. As illustrated below, if Bitcoin breaches $115,000, over $7 billion in short positions could get liquidated, triggering a cascading effect that pushes prices higher.

Bitcoin liquidation map. Source: CoinGlass

Related: Bitcoin shows signs of ‘easing momentum’ but traders still expect $150K

Onchain data shows Bitcoin in ‘overheated zone’

While the overall momentum remains bullish, Bitcoin’s rally has pushed the market into a zone where historical patterns urge caution. Two key onchain indicators—Supply in Profit Market Bands and the Advanced Net UTXO Supply Ratio—are flashing signals consistent with prior market tops.

The Supply in Profit Market Bands metric tracks how much of the circulating BTC supply is currently in profit. As of late May 2025, this figure has surged to 19.4 million BTC, nearing historical extremes and entering the “Overheated Zone.” Previously, BTC prices tested this zone on Dec. 17, 2025, which was followed by a price correction to $93,000 from $107,000.

Bitcoin Supply in Profit Market Bands. Source: CryptoQuant

Simultaneously, the Advanced Net UTXO Supply Ratio (NUSR), which compares profitable versus unprofitable UTXOs (unspent transaction outputs), is brushing against its historical ceiling around 0.95—a level frequently preceding sell signals. Red markers on the chart indicate prior instances when such conditions led to local price tops or prolonged consolidations.

Bitcoin Advanced Net UTXO Supply Ratio chart. Source: CryptoQuant

The above data does not guarantee an immediate drop, but these metrics suggest a high probability of increased volatility and profit-taking in the short-term.

Related: Bitcoin 2024 conference sparked 30% price crash — Can bulls escape this year?

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

BlackRock’s in-house portfolio has been quietly accumulating shares of its Bitcoin exchange-traded fund (ETF), underscoring the asset manager’s growing commitment to the cryptocurrency as part of a broader diversification strategy.

As of March 31, 2025, the BlackRock Strategic Income Opportunities Portfolio held 2,123,592 shares of the company’s iShares Bitcoin Trust (IBIT), valued at $99.4 million, according to filings with the US Securities and Exchange Commission (SEC). That’s a notable uptick from Dec. 31, 2024, when the portfolio held 1,691,143 IBIT shares. 

The BlackRock Strategic Income Opportunities Portfolio’s consolidated schedule of investments as of March 31, 2025. Source: SEC

BlackRock’s IBIT was among 11 spot Bitcoin ETFs approved by the SEC in January 2024. Since then, it has emerged as the largest fund in its category with more than $72 billion in net assets, according to Bitbo data.

The second-largest US Bitcoin ETF is the Fidelity Wise Origin Fund (FBTC), which trails IBIT in net assets by $50 billion. 

The Strategic Income Opportunities Portfolio is primarily a bond-focused strategy that also seeks diversified exposure to other markets, aiming to boost total returns while preserving capital, BlackRock’s prospectus reads. 

Source: MacroScope

Related: Spot Bitcoin ETFs broke records in 2024 — Can they do it again in 2025?

Bitcoin ETF demand continues to rise among institutional investors

US spot Bitcoin ETFs shattered records in their debut year, and 2025 is shaping up to deliver a similar performance. 

As reported by Cointelegraph, May is shaping up to be a record month for spot ETFs, which saw more than $1.5 billion in net inflows over just two days.

BlackRock’s IBIT has driven much of that growth, posting consistent inflows since April 9, including multiple days with net buys topping $500 million. 

Net inflows indicate that asset managers are buying shares of the Bitcoin ETFs to meet growing investor demand.

Using the early success of gold ETFs as a benchmark, asset manager Bitwise recently projected that Bitcoin fund inflows could reach $120 billion this year and more than double to $300 billion by 2026.

In terms of net inflows, Bitcoin ETFs vastly outperformed gold ETFs in their debut year. This trend is expected to continue in the coming years. Source: Bitwise Asset Management

While spot Bitcoin ETFs have opened the door for retail and institutional investors, a major untapped market remains: the wealth management platforms and wirehouses of major institutions, Bitwise analysts Juan Leon, Guillaume Girard and Will Owens wrote in the report.

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Strive, an asset manager founded by American entrepreneur and politician Vivek Ramaswamy, has announced a $750 million raise to establish “alpha-generating” strategies through Bitcoin-related purchases.

According to a May 27 announcement, the strategies will include buying undervalued biotech companies, purchasing “distressed Bitcoin claims” like those associated with crypto hacks and bankruptcies, and acquiring bottom tranches of Bitcoin credit vehicles at discounted prices.

“ […] our alpha-generating Bitcoin accumulation strategies are designed to drive sustained outperformance relative to Bitcoin itself, which requires a new valuation framework,” Strive CEO Matt Cole said.

Related: Strive targets Intuit for Bitcoin buys after orange-pilling GameStop

The $750 million raise could expand further through the exercise of warrants, potentially doubling the total to $1.5 billion. The announcement indicates that the entire raise could go to Bitcoin purchases, which could make Strive the fifth-largest Bitcoin treasury company.

The raise, completed through private investment, was priced at $1.35 per share of common stock. The funds were raised in partnership with Asset Entities, a marketing company that Strive plans to merge with.

Strive announced its intentions to deploy a Bitcoin treasury strategy in early May, also revealing plans to go public through a reverse merger with social media marketing company Asset Entities.

In a May 20 regulatory filing, the company shared plans to purchase 75,000 BTC from the bankrupt crypto exchange Mt. Gox, targeting claims that have received definitive legal rulings and in line for distribution.

The company began offering Bitcoin to clients in November 2024 and sought regulators’ permission to offer a Bitcoin bond exchange-traded fund in the same year.

Vivek Ramaswamy, a billionaire who largely built his net worth through his biotech company Roivant Sciences, ran against US President Donald Trump in the Republican presidential primaries. He later withdrew and endorsed Trump.

Trump signed an executive order in March to create a national strategic Bitcoin reserve and digital asset stockpile.

Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions