Bitcoin Enters Consolidation Phase Amid Tariff Ruling and Market Uncertainty

Bitcoin may be entering a sideways trading phase following a recent surge and new geopolitical developments, but analysts suggest that this isn’t a bearish shift. Rather, they believe it’s a natural cooldown after a strong rally. According to Nick Forster, founder of onchain options protocol Derive, the cryptocurrency is currently “digesting recent gains,” and the consolidation is likely a “healthy pause” before a potential fresh rally. Bitcoin hit a new all-time high of $111,970 on May 22 but has since pulled back to around $105,976 as of the time of writing, data from CoinMarketCap shows. The digital asset remains up 11.59% over the past month, despite recent fluctuations. “We are likely in a phase where price stability will dominate the short term,” Forster stated in an interview , adding that this phase helps “gear up for the next movement.” Trade Tariff Ruling and Fed Decision A key macro factor influencing market sentiment is the U.S. Court of International Trade’s recent decision on May 28 to strike down President Donald Trump’s broad tariff policies, ruling that he exceeded his authority. However, the following day, the Court of Appeals temporarily allowed the tariffs to stay in place under an emergency powers law while Trump appeals the ruling. Forster said the initial ruling relieved fears about trade-induced inflation, potentially giving Bitcoin some breathing room. However, all eyes are now on the U.S. Federal Reserve’s next interest rate announcement, scheduled for June 18. “The Fed’s decision will be pivotal in shaping short-term market direction,” he noted. Q3 Could Defy Historical Weakness Looking ahead, Forster suggested that the third quarter—which has traditionally been weaker for Bitcoin—may play out differently this year. “Favorable regulatory news and rising institutional interest could flip the script,” he said. Since 2013, Q3 has posted an average 6.03% gain for Bitcoin, while Q4 remains the standout performer with an average return of 85.42%, according to CoinGlass. One overlooked factor, Forster added, is the substantial yet understated impact of spot Bitcoin ETF inflows. “Over $6.2 billion flowed into BlackRock’s iShares Bitcoin Trust in May alone,” he pointed out. Yet, Bitcoin’s spot price hasn’t shown a proportional move. This, he explained, is because many ETF investors are institutions opting for indirect exposure, which doesn’t immediately pressure spot markets. In the final week ending May 23, spot Bitcoin ETFs saw $2.75 billion in inflows —highlighting strong undercurrents despite the apparent market calm. The post Bitcoin Enters Consolidation Phase Amid Tariff Ruling and Market Uncertainty appeared first on TheCoinrise.com .

Source: The Coin Rise