Key Insights:
- Strategy might kick off June with a large BTC purchase, but will it be enough to turn the tide?
- CLARITY Act optimism makes a comeback courtesy of US Treasury Secretary Scott Bessent.
- BTC price concludes May in the red, marked by elevated exchange inflows.
Strategy is reportedly planning to execute another major Bitcoin purchase amid the recent price cooldown. The BTC treasury company has been taking advantage of discounted opportunities to boost its position.
Analysts have been keeping tabs on every time Michael Saylor posts the Strategy Tracker chart. Saylor has posted again in the last 24 hours, which may be a hint that the company plans to acquire more BTC this coming week.
This could potentially trigger an upward momentum as more buyers attempt to front-run a rally, creating a positive feedback loop. The timing aligns with the latest Bitcoin price discount and the start of June, which may be characterized by attempts to find a footing.
Strategy BTC Purchase Plans Might Align with a Major Catalyst
The market had high hopes for the CLARITY Act, which was delayed after regulators failed to pass it in May. Moreover, banks recently expressed their disapproval of the latest iteration of the bill.
While the CLAIRITY Act has been consistently pushed back for months, there was little to no clear indication of when it would be passed. Nevertheless, regulators have been expressing urgency over the matter.
US Treasury Secretary Scott Bessent stated this past week that the best thing lawmakers can do is to bring digital assets to the United States.
Bessent’s statements suggest a sense of urgency for regulators to push the bill to the next stage. If this happens in June, it could be the catalyst that Bitcoin needs to push back above $100,000.
However, those statements did not constitute a clear aim to accelerate the CLARITY Act to the next stage. This means there is still no clear timeline for the bill.
Bitcoin Price Closes May in Red, Fueled By Rising Exchange Inflows
Bitcoin price just concluded May in the red by 3.59% from its monthly opening to closing price. This was contrary to expectations that the cryptocurrency would maintain the same recovery momentum it achieved in March and April.
The performance in May confirmed that the cryptocurrency failed to sustain the recovery momentum. Moreover, most of the Bitcoin that previously supported the recovery in March and April seemed to be returning to exchanges.
Bitcoin exchange reserves grew by roughly 40,600 BTC in May. The exchange reserves have since surged back to levels seen towards the end of March.
It is worth noting that the level of inflows into exchanges appears to be tapering out. This could signal that sell pressure is cooling down and could pave the way for recovery.
On the other hand, sell pressure reflects rising macro uncertainty, especially in the second half of May. Whether this trend will continue in June remains to be seen.
Bitcoin price may regain its upward trajectory if market factors align in its favor. However, sustained uncertainty could also lead to more selling pressure. Right now, Bitcoin risks losing its $73,000 support.
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