Bitcoin (BTC) registered a sharp decline on Thursday, falling over 2% and going below $106,000. Some analysts have warned of an impending correction, while others believe overall sentiment around the flagship cryptocurrency will remain positive as long as it remains above $100,000. BTC is down nearly 3% over the past 24 hours, trading around $105,662. Cantor Fitzgerald Planning Bitcoin Fund Cantor Fitzgerald Asset Management is launching a new fund combining Bitcoin exposure with downside protection tied to the price of gold. The fund, called the Cantor Fitzgerald Gold Protected Bitcoin Fund, L.P., will be the asset management company’s first investment product focused on Bitcoin. The fund is structured as a five-year vehicle and will give investors complete upside participation in Bitcoin while providing 1-to-1 protection against losses based on the price of gold. Cantor Fitzgerald’s hybrid approach addresses investor concerns regarding Bitcoin’s volatility. By linking the fund with the price of gold, Cantor Fitzgerald is positioning it as a hedging strategy, bridging traditional safe-haven assets with high-growth digital assets. The firm recently announced a partnership with Tether, Bitfinex, and SoftBank to launch a $3 billion Bitcoin investment firm called 21 Capital. China Imposes Fresh Crypto Ban China has imposed a sweeping new ban prohibiting the trading, mining, and individual ownership of cryptocurrencies and extended its scope to cover digital assets, including Bitcoin . The move is a significant escalation in China’s hardline approach to crypto and reaffirms its commitment to centralized financial control and promotion of the state-backed digital yuan. China’s decision had an immediate impact on crypto, with Bitcoin registering a sharp decline. Altcoins, especially ones sensitive to regulatory shifts, registered even greater volatility. The ban has several implications for crypto. By outlawing private crypto holdings, Beijing has tightened its grip on financial flows, potentially accelerating the adoption of the digital yuan. The ban could also lead to greater decentralization in crypto across Asia as users and investors look for jurisdictions with favorable policies. Coinsilium Adds To Bitcoin Holdings Coinsilium, a company specializing in Web3 investments and advisory services, has issued an update on its Bitcoin treasury. The firm stated it had purchased 5.0021 BTC at an average price of £82,165.49 ($110,424.26) through its Gibraltar subsidiary, Forza! The acquisition takes the company’s Bitcoin holdings to 10.0021 BTC , which includes the recent transfer of 5 Bitcoin from Coinsilium’s reserves. The firm is in the middle of developing a digital assets treasury policy to focus on the strategic management of its Bitcoin holdings. The policy will be adopted upon completion by Forza!, which is tasked with implementing Coinsilium’s Bitcoin-focused treasury operations. Bitcoin (BTC) Price Analysis Bitcoin (BTC) has slipped below the crucial $106,000 level, indicating a deeper correction could be on the cards. The flagship cryptocurrency registered a steep decline on Thursday, falling over 2% to $105,662. Analysts have warned that if BTC continues its correction, it could revisit the psychologically important $100,000 mark. A drop below this level could mark the return of bearish sentiment. Alternatively, if BTC regains momentum, it could retest $110,000. A break above this level could see a move towards $120,000. Some analysts have called BTC’s recent price action a “healthy pause” that will help the market digest recent gains. They also stated that the recent pullback cannot be interpreted as a bearish signal. Onchain options protocol founder Nick Forster stated, “While the recent surge to over $111,000 was notable, the current price action suggests a phase of consolidation rather than an imminent breakout.” According to Forster, a consolidation phase could be healthy before BTC resumes its uptrend, giving the flagship cryptocurrency time to gear up for the next phase of its price action. However, more conservative analysts believe BTC could slip to $100,000 after falling below a key level, arguing that buyers are showing signs of slowing down. They also highlighted a decline in Strategy’s purchase volume, with the firm acquiring 4020 BTC between May 19 and May 25. Some analysts believe there is a strong correlation between Strategy’s Bitcoin purchases and its price. However, others argue the firm represents only a fraction of the total Bitcoin trading volume. “MicroStrategy’s purchases represented only a fraction of total Bitcoin trading volume, with a median average weekly result of 3.3%.” BTC began the previous week in the red, dropping to an intraday low of $102,135 before recovering to settle at $105,527, ultimately registering a decline of almost 1%. The price recovered on Tuesday, rising 1.21% to $106,854. Bullish sentiment intensified on Wednesday as BTC rose nearly 3% to cross $109,000 and settle at $109,603. BTC raced to a new all-time high on Thursday, reaching $111,970 before registering a marginal decline and settling at $111,589. However, markets turned bearish on Friday, and BTC fell almost 4%, slipping below $110,000 and settling at $107,356. Source: TradingView BTC recovered over the weekend, rising 0.46% on Saturday and 1.16% on Sunday to reclaim $109,000 and settle at $109,103. Buyers retained control on Monday as the price registered a marginal increase and moved to $109,453. However, BTC lost momentum on Tuesday, falling 0.46% to $108,954. The price continued dropping on Wednesday, falling 1.03% to $107,834. Bearish sentiment intensified on Thursday as BTC fell over 2%, slipping below the 20-day SMA and settling at $105,662. The current session sees BTC marginally down as buyers and sellers struggle to establish control. If BTC continues its downtrend, it could drop to $100,000. A break below this level will confirm the return of bearish sentiment. On the other hand, if buyers regain control, the price could rise to $110,000. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
