Bitcoin Surges 5% to $107,000, Market Dominance Hits 64%

Bitcoin began the week on a positive note, rising above $107,000, the highest level since Jan. 24, before retreating to $102,000 during the Asian morning. Despite this pullback, Bitcoin has continued to trend upward, forming higher highs and higher lows within an ascending consolidation channel. Its market dominance rose above 64%, indicating strong investor confidence. The options market also shows a bullish bias, with a heavy concentration of call open interest above $100,000, particularly at the $110,000, $115,000, and $120,000 strike prices for May 30, when $8 billion in notional value expires. This suggests that traders are betting on further price increases.

Glassnode data reveals widespread accumulation across all wallet cohorts, from holders of less than 1 BTC to over 10,000 BTC. The accumulation trend score rose to 0.87, nearing the maximum value of 1, which indicates strong demand. However, a note of caution comes from the U.S. 30-year Treasury yield, which topped 5% as Moody’s Ratings downgraded the debt to Aa1 from Aaa, citing fiscal concerns in the U.S. The last time the yield rose that high, on April 9, Bitcoin dropped to a monthly low of $75,000. This correlation suggests that rising U.S. Treasury yields could pose a threat to Bitcoin's bull run.

Meanwhile, the U.K. has overtaken China as the second-largest holder of U.S. debt, and Tether’s U.S. Treasury holdings are poised to surpass Germany’s, potentially placing it among the top 20 foreign holders. At a time when the U.S. is actively seeking buyers for its bonds, none may be more critical than the issuer of the largest stablecoin. This dynamic adds another layer of complexity to the market, as the stability of Tether’s holdings could influence broader market sentiment.

Elon Musk revived his “Kekius Maximus” persona on X over the weekend, sending an associated memecoin up more than 100% after months of inactivity. Musk updated his profile picture to a gladiator-style depiction of himself and changed his display name. The Ethereum-based KEKIUS surged as followers noticed the change. The 'Kekius' name is linked to existing frog-themed coins like pepe, featuring a frog dressed up as a Roman gladiator. It stems from the "Cult of Kek," a tongue-in-cheek internet phenomenon linking the term to an ancient Egyptian frog-headed deity of chaos and darkness. Ethereum-based PEPE, another frog-themed memecoin, surged 5%, with trading volume nearly tripling to $2.19 billion, making it the second-most traded memecoin after dogecoin (DOGE). The original Kekius Maximus rally occurred on New Year’s Eve 2024, when Musk first adopted the persona, sending the coin up 600% in a few days. The coin lost all gains after Musk dropped the avatar, but has since seen episodic spikes tied to his social media activity, as in March. The latest price movement underscores Musk’s continued outsized influence on speculative crypto markets, especially meme tokens, and how monitoring his account might open up short-lived profit (albeit highly risky) opportunities for micro-cap traders.

Bitcoin's recent price action has been characterized by a typical Monday range setup, with the cryptocurrency reclaiming Monday’s low in the coming days potentially serving as a catalyst for further upside. The weekly close signals bullish momentum, but it's worth noting that Bitcoin has rallied from its April lows without a meaningful pullback, printing six consecutive green weekly candles. Should the range lows break, a deeper move toward the weekly order block between $94,000 and $99,000 becomes likely. This zone also aligns with key technical confluences, including the 50-day exponential moving average and the previous monthly high.