Bitcoin Pulls Back 50% After 50-Day Surge Amid Tariff Reinstatements

Bitfinex has released a report indicating that Bitcoin is currently experiencing its first significant pullback since the April low. Prior to this, Bitcoin's price had been on a nearly uninterrupted 50-day surge, rising from $74,501 to a record high of $111,880, marking an increase of over 50%. This pullback signifies a shift in the upward momentum and is influenced not only by technical adjustments but also by renewed macroeconomic pressures.

The unexpected reinstatement of tariffs by the U.S. government has caused the 30-year U.S. Treasury yield to exceed 5%, leading to a shift in market risk sentiment towards a 'flight to safety' mode. This change in sentiment has contributed to the current pullback in Bitcoin's price.

The Bitcoin derivatives market also shows signs of overheating. Open interest in options has reached a record $49.4 billion, indicating heightened institutional activity and increased hedging and speculation following Bitcoin's new all-time high. This position structure suggests that the market anticipates increased future volatility and may face further macro headwinds and structural profit-taking pressures.

On-chain indicators support this view. The relative unrealized profit has broken through its +2 standard deviation range, entering a historically regarded 'market fervor' area. This typically signals intense intraday volatility or the arrival of a local top.

Despite the pullback, Bitfinex maintains that Bitcoin's structural strength remains intact. This adjustment is seen as a healthy reset rather than a trend break. It is primarily driven by leveraged liquidation and profit-taking at highs, occurring after the most intense rebound in crypto history.