Bitcoin Analysis: Recent Volatility and Market Outlook on June 3, 2025

Bitcoin faces price volatility. This article analyzes market trends and key drivers.

Bitcoin, the world’s largest cryptocurrency, is experiencing significant volatility as of June 3, 2025. Its price hovers around $104,500, reflecting a 4% decline over the past week. This drop is largely driven by macroeconomic factors and geopolitical tensions. Recent U.S.-China trade disputes, particularly comments from Donald Trump about China breaching trade agreements, have created uncertainty in financial markets, putting pressure on high-risk assets like Bitcoin. Technical analysis indicates Bitcoin is in a corrective phase. After failing to break through the $110,000 resistance level, the price has retreated to support zones between $104,000 and $102,000. Analysts suggest that a breach of these supports could lead to a decline toward $100,000 or even $96,000. However, high trading volumes and whale activity in the market signal sustained interest in Bitcoin, hinting at a potential bullish reversal in the future. From a macroeconomic perspective, the Federal Reserve’s interest rate decisions will be pivotal for Bitcoin’s trajectory. A rate cut could increase market liquidity, potentially driving Bitcoin’s price higher. Conversely, continued tight monetary policies may exert further downward pressure on cryptocurrencies. Additionally, the rising supply of stablecoins in the market suggests fresh capital inflows, which could benefit both altcoins and Bitcoin in the long term. A notable development is Bitcoin’s dominance dropping below 70%, which may signal the start of an altcoin season. In such scenarios, investors may shift focus to altcoins like Ethereum, Solana, and Ripple. Nevertheless, Bitcoin remains the market’s benchmark, and its movements directly influence other cryptocurrencies. For investors, the current strategy should focus on monitoring support levels and awaiting bullish signals. Buying opportunities may arise in the $100,000 to $102,000 range, provided the market shows signs of recovery. While Bitcoin faces short-term bearish pressure, its long-term outlook remains positive, particularly if macroeconomic conditions shift in favor of the market. In conclusion, investors should closely follow macroeconomic news, especially Federal Reserve decisions and global trade developments. Utilizing technical analysis tools like liquid heatmaps can also aid in identifying optimal entry and exit points.