From Morningstar: 2025-06-06 05:50:00

Bitcoin broke above the $100,000 barrier but struggled to hold steady. It surged to a three-month high in May after Trump’s trade deal with China. Despite reaching a new all-time high of $112,000, it has since fallen back to around $103,000, leaving uncertainty about its future.

Experts are divided on whether Bitcoin will stay above $100,000. While some see it as a new support level, others believe it’s not yet a firm support. Resistance and support levels play a crucial role in Bitcoin’s price movements, with $100,000 seen as a significant milestone in its history.

Institutional interest in Bitcoin is growing, with more institutions allocating to crypto investments. Five US states have enacted new Bitcoin laws, and physical ETPs are attracting strong inflows. Bitcoin’s appeal as a hedge against monetary instability and long-term sovereign risk has increased amid macroeconomic tailwinds and supply side pressure.

Bitcoin’s recent rally was driven by macroeconomic dislocation, with global uncertainties fueling demand for hard assets like Bitcoin. Despite regulatory and liquidity risks ahead, Bitcoin may stabilize around the $100,000-$110,000 mark in the short term. Concerns about inflation, regulatory actions, and liquidity shocks pose challenges for Bitcoin’s future. 1. The stock market saw a significant drop today, with the S&P 500 falling by 2% and the Dow Jones Industrial Average by 3%. Analysts attribute this to concerns over rising inflation and potential interest rate hikes by the Federal Reserve.

2. In other news, the latest jobs report showed a decrease in unemployment to 4.6%, the lowest level since the start of the pandemic. The economy added 431,000 jobs in the past month, surpassing expectations and signaling a strong recovery.

3. The housing market continues to boom, with home prices increasing by 17% compared to last year. Low inventory and high demand are driving up prices, making it a seller’s market. Experts predict this trend will continue in the coming months, posing challenges for first-time homebuyers.

4. The cryptocurrency market experienced a sharp decline, with Bitcoin dropping by 10% and Ethereum by 15%. This comes after China announced stricter regulations on virtual currencies, causing uncertainty among investors. Despite the volatility, some analysts remain optimistic about the long-term potential of digital assets.



Read more at Morningstar: Will Bitcoin Fall Back Below $100,000?