As May turned to June, Bitcoin (BTC) experienced a notable price correction. As of 4:00 p.m. on June 3, BTC was trading at approximately $105,200, down from its recent peak near $112,000. This current market phase presents both opportunities and risks for retail traders.
From a technical perspective, significant volatility may lie ahead. However, institutional sentiment remains cautiously optimistic. Bitfinex Alpha, in its latest report, described Bitcoin as undergoing a healthy consolidation, though it also warned of ongoing market volatility.
On the 4-hour candlestick chart, Bitcoin has formed a classic bearish flag pattern. This formation began after BTC touched $103,100 on May 31. Should the key support at $105,000 fail to hold, the bear flag could indicate a potential downside target of $97,700. Key psychological support levels such as $100,000 and the year’s opening level around $92,000 warrant close attention.
Bitcoin 4-hour candlestick chart. Source: Gate.io
On-Chain Data Signals Market Euphoria and Rising Volatility
According to Bitfinex Alpha, the current correction is primarily driven by a shift in momentum and renewed macroeconomic pressures. The U.S. government's surprise reimposition of tariffs has pushed 30-year Treasury yields above 5%, triggering heightened risk aversion across markets. This macro backdrop is weighing on Bitcoin’s price action, with signs of overheating in the derivatives market.
Open interest in Bitcoin options has surged to a record $49.4 billion, signaling growing institutional participation as well as intensified hedging and speculative activity. This reflects rising expectations of future volatility, fueled by macro uncertainty and profit-taking behavior among investors.
On-chain indicators suggest Bitcoin is currently in a phase historically associated with "extreme euphoria" — often a precursor to sharp market swings. Despite recent pullbacks, Bitcoin’s structural fundamentals remain intact. As such, the current correction is more likely a healthy retracement rather than the start of a major reversal or crash.
The U.S. economy is facing multiple challenges, including trade tensions, sluggish consumer spending, and policy uncertainty. Households are saving more and cutting back on discretionary expenditures. While inflation remains relatively moderate, companies have begun passing on increased costs from tariffs to end consumers, which could impact inflation trends moving forward.
Institutional Investors Stay the Course with Bitcoin
Despite the price retracement and weakening momentum in the short term, institutional investors continue to demonstrate strong conviction in Bitcoin. Many are increasing exposure through regulated channels.
For example, Russia’s largest bank, Sberbank, has launched a new structured bond product that allows qualified investors to gain indirect exposure to Bitcoin. The over-the-counter product is denominated in rubles and links returns to BTC/USD performance as well as potential appreciation in USD/RUB, without requiring cryptocurrency wallets or foreign exchanges.
Meanwhile, MicroStrategy — often called Wall Street’s most aggressive Bitcoin holder — announced on June 2 its plan to issue $250 million in convertible preferred stock to raise capital for further Bitcoin purchases. At current prices, this amount would allow the company to acquire approximately 2,351 more BTC.
MicroStrategy currently holds 580,955 BTC, valued at over $61.7 billion. According to BitcoinTreasuries.NET, its holdings exceed those of the next 117 publicly listed Bitcoin-holding companies combined — more than double, in fact.
Following MicroStrategy’s lead, Japan’s Metaplanet has also taken advantage of the recent dip to accumulate more Bitcoin. In its latest June disclosure, the company revealed it had purchased 1,088 BTC at an average price of $108,400 each, totaling an investment of $117.9 million. Metaplanet now holds 8,888 BTC, with an average acquisition cost of $93,354.
Over the past 12 months, Metaplanet’s Bitcoin strategy has yielded a return of 225%, helping drive a nearly 200% increase in its share price over the past month.
Conclusion
Bitcoin’s broader price trend remains firmly bullish. Since bottoming near $74,000, BTC has continued to chart higher highs and higher lows. The current correction appears to be a natural pullback within the trend, possibly marking the formation of a new higher low. A break below $104,300, accompanied by a significant surge in volume, would be required to challenge this optimistic outlook.