🚀 Bitcoin price tops $68K, but a few concerning headwinds remain

📈 Bitcoin's Struggle Near $68,000: Bitcoin last closed above $68,000 on April 11, despite several attempts in the past five days. Although BTC gained 2% on May 20, it still needs a 7% increase to reach its all-time high. Meanwhile, gold hit a record $2,450, and the S&P 500 peaked at 5,325 points, leaving BTC investors questioning its lag.

💵 Monetary Expansion Influence: Bitcoin’s 51% year-to-date gain reflects anticipation of U.S. monetary expansion. The Federal Reserve injected liquidity to support the banking sector and stimulate the economy, pushing the U.S. monetary base (M2) past $21 trillion in April 2024. Rising inflationary pressures, despite stagnant spending, suggest more complexity in future liquidity injections and interest rate strategies.

🏠 Global Real Estate Weakness: Bitcoin’s price faces external pressures, including a weak global real estate sector. On May 17, Chinese authorities announced a $42.2 billion intervention to address unsold apartments, highlighting economic downturn risks. Additionally, commercial real estate faces a balance sheet crisis, potentially affecting North American banks.

🪙 Bitcoin's Limited Adoption: Despite the potential benefits of Bitcoin during an economic recession, it remains not mainstream, especially as a closed-loop financial system. Investors still view Bitcoin as a risk-on asset rather than a primary hedge.

⚖️ Grayscale Concerns: On May 20, Grayscale CEO Michael Sonnenshein resigned, raising concerns about the potential liquidation of the $19.4 billion GBTC fund due to Digital Currency Group's struggles, which could impact Bitcoin’s price negatively.