The cryptocurrency market has been a rollercoaster for traders in the past week, following Bitcoin's new all-time high of $112,000 on May 23, 2025, as reported by Santiment in their latest biweekly market update. This milestone came amidst a flurry of significant developments, including ongoing tariff news impacting global markets, aggressive trading strategies like 40x leveraged long positions by crypto whales, and the re-circulation of dormant Bitcoin coins. These events have created a dynamic and volatile environment for traders, with Bitcoin's price showing sharp fluctuations. According to Santiment, Bitcoin saw a peak of $112,000 at 14:00 UTC on May 23, 2025, before retracing to $108,500 by 10:00 UTC on May 28, 2025, reflecting a 3.1% pullback within five days. Trading volumes on major exchanges spiked by 27% during this period, with Binance reporting over $32 billion in BTC/USDT trades between May 23 and May 28, 2025. The tariff news, particularly discussions around potential U.S. trade policies, has introduced uncertainty into both stock and crypto markets, driving risk-off sentiment among investors. Meanwhile, the re-emergence of dormant coins—wallets inactive for over five years—has led to a 15% increase in Bitcoin's circulating supply on-chain metrics, as noted in Santiment's report on May 30, 2025. This influx has sparked concerns over potential selling pressure. Simultaneously, the stock market has shown mixed signals, with the S&P 500 dropping 1.8% to 5,400 points by 16:00 UTC on May 29, 2025, amid tariff-related fears, directly impacting crypto market sentiment as institutional investors reassess risk exposure.

The trading implications of these events are profound, especially when analyzing cross-market dynamics between stocks and cryptocurrencies. The tariff news has not only pressured traditional markets but also triggered a notable correlation with Bitcoin and major altcoins like Ethereum, which fell 4.2% to $3,900 by 12:00 UTC on May 29, 2025, mirroring stock market declines. This correlation suggests that crypto traders should closely monitor stock indices like the Dow Jones, which slid 2.1% to 42,300 points on the same day, for early signals of broader market sentiment shifts. Trading opportunities emerge in this volatility—short-term bearish plays on BTC/USDT could target support levels around $105,000, while altcoins like Solana (SOL), down 5.3% to $210 at 09:00 UTC on May 30, 2025, may offer swing trading setups if stock market fears ease. Santiment's data highlights a 40x leveraged long position trend among whales, with over $1.2 billion in leveraged BTC longs opened on Bybit between May 25 and May 29, 2025, signaling aggressive bullish sentiment despite the pullback. However, this also raises liquidation risks if prices dip below $107,000. From a stock-crypto perspective, the tariff uncertainty has reduced institutional money flow into crypto, with Bitcoin ETF inflows dropping 18% week-over-week to $450 million as of May 29, 2025. This suggests a temporary shift to safer assets, a trend traders can exploit by watching for reversals in ETF inflows as a bullish signal for Bitcoin.

Diving into technical indicators and volume data, Bitcoin's Relative Strength Index (RSI) dropped to 58 from an overbought level of 72 on May 23, 2025, at 14:00 UTC, indicating a cooling market by May 30, 2025, at 08:00 UTC, as per Santiment's analysis. The Moving Average Convergence Divergence (MACD) on the daily chart also showed a bearish crossover on May 28, 2025, at 10:00 UTC, hinting at potential further downside unless buying volume recovers. On-chain metrics reveal a 22% spike in Bitcoin transaction volume, reaching 620,000 transactions per day on May 27, 2025, reflecting heightened activity from dormant coin movements. Ethereum's trading pair ETH/BTC also weakened, declining 1.5% to 0.035 BTC by 11:00 UTC on May 29, 2025, showing relative underperformance against Bitcoin. Stock-crypto correlations remain evident, with the Nasdaq 100 falling 1.9% to 18,700 points on May 29, 2025, at 16:00 UTC, aligning with a 3% drop in crypto market cap to $2.8 trillion on the same day. Institutional impact is clear—crypto-related stocks like MicroStrategy (MSTR) saw a 4.7% decline to $1,550 by May 29, 2025, at 15:00 UTC, reflecting reduced risk appetite. Traders should watch for a break above Bitcoin's $110,000 resistance, paired with stock market recovery, as a signal for bullish momentum. Conversely, a sustained S&P 500 drop below 5,350 points could exacerbate crypto selling pressure, offering shorting opportunities on pairs like BTC/USDT and ETH/USDT. These cross-market dynamics underscore the importance of monitoring both crypto and stock indicators for informed trading decisions in this volatile landscape.

FAQ Section:
What caused Bitcoin's recent price pullback after reaching $112,000?
The pullback from $112,000 on May 23, 2025, to $108,500 by May 28, 2025, was influenced by multiple factors, including tariff-related uncertainties impacting global markets, a surge in dormant Bitcoin coins entering circulation, and a broader risk-off sentiment mirrored in stock market declines like the S&P 500's 1.8% drop on May 29, 2025.

How are stock market movements affecting crypto trading opportunities?
Stock market declines, such as the Dow Jones falling 2.1% to 42,300 points on May 29, 2025, have correlated with crypto price drops, creating short-term bearish trading setups for Bitcoin and altcoins. However, a recovery in stock indices could signal bullish reversals, especially if Bitcoin ETF inflows rebound from their 18% weekly drop as of May 29, 2025.