Bitcoin soars as Trump Media, corporations plan to buy BTC
Bitcoin (BTC) reached $110,700 on May 27, driven by a strong US equities market and the Trump Media and Technology Group's plan to raise $2.5 billion for a Bitcoin treasury. The National Financial Conditions Index (NFCI) indicates a shift to ultra-loose financial conditions, promoting risk-taking among investors. Ecoinometrics reports that liquidity has returned, creating a favorable environment for Bitcoin, which is now just 2% from its all-time high. A potential short-squeeze could occur if Bitcoin surpasses $115,000, risking over $7 billion in liquidations. However, onchain indicators show Bitcoin in an 'overheated zone,' with 19.4 million BTC in profit and the Advanced Net UTXO Supply Ratio nearing historical highs, suggesting caution and potential volatility ahead.
