Bitcoin faces mounting pressure as its price retreats from a near $97,000 peak to around $90,000. This decline has pushed recent buyers into losses, amid significant institutional selling and ETF outflows. Despite the weak market sentiment, prominent figures like Binance’s CZ are forecasting a Bitcoin “supercycle,” creating a stark divergence between cautious on-chain data and bullish predictions.
Bitcoin failed to hold key resistance after reaching its second-highest high near $97,000 just ten days ago. The subsequent drop has left a sizable group of holders who bought near the local top facing unrealized losses.
Macro conditions offer little support, with volatility rotating capital to safe havens. Bitcoin’s institutional bid has softened, evidenced by nearly $1.8 billion in ETF outflows in under a week.
Corporate holder GameStop recently moved 100% of its Bitcoin holdings to Coinbase Prime, a move that likely suggests potential selling. The firm had accumulated 4,710 BTC at an average price of $107,000 in mid-May 2025, a position now indicating potential realized losses of approximately $76 million.
Despite this, industry heavyweights are talking up a bullish long-term outlook. Binance founder CZ echoed a Bitcoin “supercycle” in a recent video interview.
On-chain metrics, however, paint a cautious picture as Bitcoin’s bear momentum builds. The Net Realized Profit/Loss metric has turned red, indicating investors are beginning to realize losses, which historically aligns with deeper corrections.
This puts Bitcoin’s $85,000 support level under significant pressure. The divergence between weak fundamentals and optimistic forecasts may be influenced by external factors like volatility surrounding the crypto bill and an overheated metals market.
Consequently, this gap is pulling in speculative capital as BTC leverage ramps back up. Analysts suggest this setup could potentially trap that capital in a liquidation event.
