Bitcoin Drops Below $105,000 Amid Selling Pressure, JPMorgan Allows Clients to Buy

Bitcoin (BTC) experienced a decline during the ongoing session, falling below the $105,000 mark as selling pressure at higher levels hindered bullish momentum. The cryptocurrency plummeted to a low of $102,145 on Monday, starting the week in the red before rebounding to reclaim $105,000 and settle at $105,573. Despite the decline, BTC remains up by over 2% over the past 24 hours, trading around $104,700.

A court ruling in Australia could potentially lead to $640 million in capital gains tax (CGT) refunds on Bitcoin transactions. The judge ruled that crypto should be treated as money rather than a taxable asset. This decision came during a hearing for a criminal case involving a federal police officer who allegedly stole over 80 Bitcoin in 2019. Judge Michael O’Connell ruled that Bitcoin qualifies as a form of money rather than property, linking the asset to Australian Dollars instead of shares, gold, or foreign currency. This interpretation could set a legal precedent, potentially putting Bitcoin outside the purview of Australia’s CGT regime. Tax lawyer Adrian Cartland stated that the verdict upends the Australian Taxation Office’s (ATO) current position on crypto assets. The ATO has classified Bitcoin and other crypto assets as CGT assets, meaning holders had to pay tax when trading or selling the assets. The ATO stated that selling or exchanging Bitcoin for any other crypto or using it to purchase goods and services was a CGT event. Cartland stated, “That is, it is not a CGT asset. Therefore, acquisitions and disposals of Bitcoin have no tax consequences.”

JPMorgan CEO Jamie Dimon, a longtime crypto skeptic, has announced that the bank will allow its clients to purchase Bitcoin. Dimon made this announcement during a speech at the bank’s annual investor day. “We are going to allow you to buy it. We’re not going to custody it. We’re going to put it in statements for clients.” The decision to allow customers to purchase Bitcoin is significant, given Dimon’s views on the flagship cryptocurrency and the broader crypto market. Dimon had called Bitcoin worthless in 2021, and reiterated his stance in 2023 during a Senate hearing and again in 2024 at the World Economic Forum. The JPMorgan CEO had stated that he has always been opposed to Bitcoin and crypto, noting that the only true use case of cryptocurrencies for criminals, money laundering, and tax evasion. While the JPMorgan CEO has maintained a negative view of crypto and BTC, the broader banking and financial system has embraced them, with institutions like BlackRock and Morgan Stanley tapping into the crypto ecosystem for their clients.

Bitcoin (BTC) remains stuck under $105,000 as it extended its losses during the ongoing session. The flagship cryptocurrency started the week with a drop to $102,045 as selling pressure intensified. However, it recouped some losses, rising to reclaim $105,000 and settle at $105,573. Analysts believe that despite BTC’s less-than-impressive start to the week, the overall sentiment around the asset was bullish. “The break above key support levels and targeting of the resistance zone near $107,500 suggest a strong potential for a new all-time high, driven by healthier market dynamics rather than speculative excess. Institutional interest remains a key catalyst, as evidenced by JPMorgan’s recent announcement to offer Bitcoin access via spot ETFs, a significant endorsement from a major traditional finance player following Morgan Stanley’s similar moves.”

Meanwhile, spot Bitcoin ETFs registered their best day of trading since the beginning of May as smaller funds registered healthy inflows. According to data from SoSoValue, Fidelity’s Wise Origin Bitcoin Fund (FBTC) saw inflows worth $188 million in 24 hours, while ARK 21Shares registered inflows of $155 million. The two funds accounted for half the funds invested across all Bitcoin ETFs on Monday. Bitcoin ETFs registered total inflows of $667 million as BTC maintained its position above $100,000. Vikram Subburaj, CEO of Giottus Crypto Platform, stated, “Bitcoin faces strong resistance at $107,000 and must remain above $105,000 to break through this level. Spot ETF inflows continue to boost the asset, with $360 million recorded yesterday. If this move sustains a new high ($110,000) is likely this month where open interest among derivatives is concentrated.”

BTC started the previous weekend on a positive note, rising nearly 2% on Saturday and settling at $104,617. However, it lost momentum on Sunday, dropping almost 1% to $103,802. BTC encountered volatility on Monday as buyers and sellers struggled to establish control. Sellers ultimately gained the upper hand as the price registered a drop of 1.04% and settled at $102,728. BTC rebounded on Tuesday, rising 1.36% to reclaim $104,000 and settle at $104,123, but fell back on Wednesday, registering a marginal decline and settling at $103,568. The price plunged to an intraday low of $101,458 on Thursday as selling pressure intensified. However, it recovered from this level to register a marginal increase and settle at $103,816. Price action was back in bearish territory on Friday, registering a marginal decline. BTC continued to drop on Saturday, falling 0.30% and settling at $103,235. The price rebounded on Sunday as bullish sentiment returned, rising over 3% to cross $106,000 and settle at $106,479. BTC lost momentum on Sunday as selling pressure returned, falling to a low of $102,145 before settling at $105,573, ultimately registering a marginal decline. The current session sees BTC down nearly 1% as it struggles to build momentum and reclaim $105,000.