Bitcoin consolidates at US$105k as U.S. inflation data keeps markets cautious

Key market insights

• Bitcoin consolidates at US$105k as inflation data keeps markets cautious: Bitcoin holds near US$105k as inflation data lands softly and analysts look at potential next moves
• US spot Bitcoin ETF institutional flows hit pause: After six consecutive weeks of inflows, US-based spot Bitcoin ETFs experienced a reversal, recording net outflows of US$157 million.
• US SEC clarifies staking rules, paving the way for US crypto ETFs: According to the SEC, certain staking activities on PoS blockchains aren't securities transactions
• Reform UK embraces Bitcoin donations, proposes crypto-friendly legislation: Reform UK, led by Nigel Farage, is the first British political party to accept Bitcoin donations
• Crypto wallets seen as financial hubs in emerging markets: Crypto wallets have become essential in emerging markets for daily transactions according to a new survey

The weekly trading stats as of Monday, June 6th at 10:00 am AEST, based on data from Tradingview in USD.

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Bitcoin consolidates at US$105k as inflation data keeps markets cautious

Bitcoin is trading around US$105,000, maintaining a critical support level despite what can be described as muted inflation data out of the U.S. and cautious investor sentiment. While short-term momentum has cooled, the longer-term outlook remains optimistic, with potential for a renewed push toward US$115k. Indicators like the RSI and MACD are showing signs that the strong bullish momentum is starting to wane, at least temporarily. That said, the longer-term outlook still leans optimistic. There's growing conviction among analysts and market participants that we could be in the early stages of a new super cycle.

The broader crypto market reflects the overall cautious stance, with altcoins experiencing slight dips after the release of April's Core Personal Consumption Expenditures index, which showed a modest 0.2% month-over-month increase. This matched analyst expectations and signalled the slowest yearly increase since early 2021. Moving into June, traders are likely to closely monitor macroeconomic indicators and central bank signals to gauge the next direction for Bitcoin and the rest of the market.

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US spot Bitcoin ETF institutional flows hit pause after six weeks of positive momentum

After six consecutive weeks of inflows, US-based spot Bitcoin ETFs experienced a reversal, recording net outflows of US$157 million. The pullback comes amid broader market volatility and a retreat in Bitcoin’s price from recent highs. BlackRock’s iShares Bitcoin Trust (IBIT) led the outflows, with investors withdrawing approximately US$430.82 million over the week. While this may indicate a degree of caution among institutional investors, it's not necessarily a signal of long-term sentiment turning bearish. Instead, it may reflect short-term profit-taking or portfolio rebalancing ahead of macroeconomic data releases.

In contrast to the outflows, one notable exception was MicroStrategy), which continues its aggressive accumulation strategy. The firm purchased an additional 4,020 BTC for approximately US$427 million. This latest acquisition brings MicroStrategy’s total Bitcoin holdings to 580,250 BTC, reinforcing its conviction in Bitcoin as a long-term store of value and treasury reserve asset.

The divergence between ETF flows and direct corporate accumulation suggests that institutional interest remains intact, albeit with differing strategies in response to market conditions. As the market adjusts to shifting liquidity and sentiment, the behaviour of institutional players will be closely watched in the lead-up to further regulatory developments and central bank policy updates.

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SEC clarifies staking rules, paving the way for US crypto ETFs

The US Securities and Exchange Commission (SEC) has issued new guidance stating that certain protocol staking activities on proof-of-stake (PoS) blockchains do not constitute securities transactions. Alison Mangiero, the head of staking policy at the Crypto Council for Innovation stated, "The SEC has now recognized what we’ve long argued: Staking is a core part of how modern blockchains operate, not an investment contract." The SEC's clarification is seen by some as a step in the right direction for the broader crypto industry and potentially facilitating the approval of staking-based exchange-traded funds (ETFs) in the US.

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Reform UK embraces Bitcoin donations, proposes crypto-friendly legislation

Reform UK, led by Nigel Farage, has become the first British political party to accept Bitcoin donations. At a cryptocurrency conference in Las Vegas, Farage unveiled a draft "Crypto Assets and Digital Finance Bill," which includes proposals such as reducing capital gains tax on crypto assets to 10% and establishing a "Bitcoin digital reserve" at the Bank of England. According to Farage, Reform would launch a "crypto revolution" in the UK, and stated, "Let's recognise that crypto, Bitcoin, digital assets are here to stay." This all comes a month after Chancellor Rachel Reeves said that she would regulate Bitcoin just like traditional finance companies.

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Crypto wallets seen as financial hubs in emerging markets

A recent survey report reveals that users in emerging markets are increasingly utilising crypto wallets for daily transactions, in contrast with developed regions where trading remains predominant. The survey highlights how individuals in Southeast Asia, South Asia, and Africa predominantly use wallets for sending crypto due to limited access to traditional banking services. Although North America and East Asia apparently showed balanced crypto trading and transfers, it was East Asia that led in terms of long-term holdings at a whopping 43%. This shows how much the role of crypto wallets has evolved as now-essential financial tools in such regions because of the underdeveloped banking infrastructure.

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Looking ahead

As June unfolds, Bitcoin’s next move will likely depend on a combination of macroeconomic signals, ETF flows, and technical support levels. Holding above US$103,000 may provide the foundation for another attempt to break higher, with US$115,000 emerging as the next upside target, contingent on a shift in broader market sentiment.

Investors will be watching key economic data, particularly US inflation readings and central bank commentary, for clues on risk appetite and liquidity conditions. ETF inflows will also serve as a barometer of institutional interest, especially following recent fluctuations in demand.

On the technical front, indicators like the RSI and MACD are suggesting that bullish momentum is slowing, at least in the short term. This points to a potential period of consolidation unless fresh catalysts drive renewed buying activity.

While a decisive break below current support zones could open the door to a deeper pullback, analysts broadly maintain a positive long-term view. The market remains structurally bullish, underpinned by growing institutional adoption and strong fundamentals. As investors navigate the weeks ahead, the balance between macro risk and crypto-specific drivers will be critical in shaping Bitcoin’s next directional move.

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