Bitcoin price today: retreats to $103k after hitting 4-mth high in short squeeze

Investing.com-- Bitcoin retreated after rising early Monday,  with more than $600 million in crypto derivatives positions wiped out since late Sunday after bitcoin surged past $106,000 during early trading hours, then abruptly reversed to around $103,000.

The world’s largest cryptocurrency fell 1.4% to $103,200 by 09:50 ET (13:50 GMT), after jumping past $107,000 earlier in the session.

The token reached its highest level since late January 2025 and was just shy of breaching its all-time high of $109,228.

Bitcoin jumped over $2,500 in under an hour in late Sunday trading, likely driven by thin weekend liquidity and algorithmic buying at key technical levels. The surge appeared to trigger a classic short squeeze, followed by swift profit-taking or stop-loss selling.

Bitcoin rally in May backed by macro shifts, regulatory tailwinds

Bitcoin has surged more than 11% this month, mostly driven by optimism over easing trade tensions between the world’s two largest economies.

Several other factors also contributed to this rise. Last week’s subdued inflation prints from the U.S. bolstered expectations of a Fed rate cut this year, but investors were still cautious about a tariff-induced reacceleration in inflation. 

Lower inflation and the potential for reduced interest rates typically weaken the U.S. dollar, making alternative assets like Bitcoin more attractive.

Institutional investments have also played a significant role; for instance, Strategy Inc (NASDAQ:MSTR) recently acquired 13,390 BTC for $1.34 billion, highlighting growing corporate interest in Bitcoin as a strategic asset.

Major exchanges were also expanding their crypto offerings. Coinbase Global Inc (NASDAQ:COIN) became the first digital asset player to join the S&P 500 index.

Bitcoin’s rally was further supported by optimism over a favorable regulatory environment under the U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins. 

Macroeconomic uncertainties, such as Moody’s downgrade of the U.S. sovereign credit rating, have prompted investors to seek alternative stores of value.

Bitcoin’s recent gains are driven by a combination of geopolitical developments, institutional adoption, and its perceived role as a hedge against economic uncertainty.

Strategy buys $765 million more worth of Bitcoin

Strategy has added 7,390 Bitcoin to its holdings in a deal worth about $764.9 million, according to a regulatory filing published Monday. The average purchase price for the new bitcoins was $103,498 each.

With this latest acquisition, the company’s total bitcoin stash has grown to 576,230 BTC, currently valued at approximately $59 billion based on market prices near $103,000 per coin. The firm’s overall average cost across its entire Bitcoin position is now $69,726 per bitcoin.

The purchase was funded through a combination of capital raised via an at-the-market equity offering and the issuance of preferred stock.

Crypto price today: altcoins in the red; Ether slips 3%

Most altcoins were rage-bound on Monday after a volatile week.

World no.2 crypto Ethereum fell 3.2% to $2,437.51.

World no. 3 crypto XRP slid around 3% to $2.32.

Solana and Cardano fell more than 5% and 3%, respectively, while Polygon lost 3.5%.

Among meme tokens, Dogecoin fell 2.4%, while $TRUMP dropped 2.7%.

Ayushman Ojha contributed to this report.