Bitcoin (BTC) ended the final week of May on a slightly weaker note, declining approximately 3% over three consecutive trading days. The price retraced from highs around $70,000 and found temporary support in the $66,000–$68,000 range. While some retail investors may view this as a bearish signal, the broader outlook remains optimistic—driven largely by robust institutional interest.
Spike in Profit-Taking Activity
One of the key drivers behind Bitcoin’s recent pullback is a surge in profit-taking. According to on-chain analytics firm Santiment, the Network Realized Profit/Loss (NPL) metric—which tracks the overall amount of profit being taken—spiked sharply on May 28, hitting its highest level since early February. This data suggests that a significant number of investors decided to lock in gains after BTC hovered near all-time highs.
Glassnode also reported that the Volatility-Adjusted Net Realized Profit/Loss—a metric that measures profit adjusted for market volatility—has been rising, but is still lower than levels seen during past market tops. This implies that while profits are being taken, the market has not yet entered a euphoric or unsustainable phase.
Institutional Demand Remains Resilient
Despite the temporary price correction, institutional investors continue to show confidence in Bitcoin’s long-term potential. Several major firms have recently increased their BTC holdings:
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Strategy (formerly MicroStrategy) purchased 705 BTC for approximately $75 million, bringing its total holdings to over 158,000 BTC, worth more than $11 billion at current prices.
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Metaplanet, often referred to as “Japan’s MicroStrategy,” bought 1,088 BTC valued at $117 million, increasing its treasury to 8,888 BTC.
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Reitar Logtech Holdings announced a bold plan to acquire up to $1.5 billion worth of Bitcoin, a move aimed at reinforcing their treasury assets amid growing global interest in BTC as a store of value.
This institutional appetite signals that large-scale investors are using the recent dip as a strategic buying opportunity, reinforcing the belief that Bitcoin is evolving from a speculative asset into a legitimate treasury reserve option.
ETF Inflows Strengthen the Bullish Outlook
The strength of institutional demand is further confirmed by the sustained inflows into U.S.-based spot Bitcoin ETFs. After brief net outflows in early May, the trend has reversed, with net positive inflows being recorded again. This renewed momentum highlights investor confidence in regulated Bitcoin investment vehicles, particularly among institutional portfolios that prefer ETF exposure over direct custody.
BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC) continue to lead in weekly net inflows, reinforcing the view that traditional finance is gradually integrating with the crypto space.
Technical Picture: What’s Next for BTC?
From a technical standpoint, Bitcoin remains in an overall uptrend, despite the recent pullback. The $66,000 level is being watched closely by analysts as a key short-term support. If BTC holds above this area, it may pave the way for a retest of the $70,000 psychological resistance and potentially new all-time highs if momentum strengthens.
However, if selling pressure intensifies and BTC breaks below $66,000, the next major support lies near $60,000, a critical level aligned with previous consolidation zones and the 100-day moving average.
Conclusion: Temporary Dip or Trend Reversal?
This week’s dip in Bitcoin appears to be a healthy correction driven by profit-taking rather than the start of a deeper bearish trend. Strong institutional inflows, consistent ETF demand, and increasing corporate adoption suggest that the long-term thesis for Bitcoin remains intact.
Investors and traders should monitor key price levels, on-chain data, and institutional behavior closely. In an environment where central banks are signaling potential rate cuts and inflation remains a concern, Bitcoin’s role as a digital store of value may continue to attract capital, especially from large institutions seeking alternative assets.
