Bitcoin Retreats Below $110K. Where Is It Headed Next?

Bitcoin may be slowing down right now, but that will likely not be for long because of how bullish the coin has been recently.

Timothy St. John•Friday, May 23, 2025•2 min read

We expect Bitcoin to stay high for this week.

Quick overview

Bitcoin has recently fallen to $109,898 after reaching a record high of $111,970.
The establishment of a new regulatory framework for stablecoins is expected to boost the entire crypto market, including Bitcoin.
Despite some downward pressure from U.S. deficit concerns, Bitcoin's bullish trend is likely to continue.
Market sentiment remains mostly bullish, with investors and whales holding onto their investments amid positive regulatory changes.

Live BTC/USD Chart

BTC/USD

0.0000

MARKETS TREND

TRADE BTC/USD

After setting a record high, Bitcoin (BTC) has fallen to $109,898 (BTC/USD). We expected some slowdown for the coin after it climbed very quickly, but the question is where is it going from here?

Bitcoin is likely preparing to climb higher.

Bitcoin could continue upward, propelled by the recent good news that a new regulatory framework would be established for stablecoins, making them easier to buy and sell. The stablecoin market is expected to expand exponentially as a result of this decision, helping the entire crypto market as a result. Bitcoin reached a record high of $111,970 on Thursday, setting a precedent for a higher support level.

BTC/USD

Instead of retreating below $100K after the coin passed that mark recently, Bitcoin climbed even higher and set a record. That tells us that the coin is uncommonly strong at the moment and could move even higher. There is some downward pressure created by U.S deficit concerns over the new budget bill that is moving to the Senate for approval. But that may not be enough to stifle Bitcoin’s bullish trend.

Bitcoin Will Likely Stay Bullish

We expect that today’s retreat is only a temporary hiccup in an otherwise impressive bull run. Bitcoin has been climbing fairly steadily for the past few days, performing better than the stock market indices overall and buoyed by the performance of other cryptos as well.

Over the past week, Bitcoin has gained 6%, and market sentiment on the coin is mostly bullish. Investors are expecting the coin to rise, for the most part, which means that there is little risk that many of them will abandon the coin and try to cash out.

Many Bitcoin whales have quite a bit riding on the coin’s success, so they are likely to hold onto their investments rather than sell at this juncture. Because Bitcoin’s recent success has been prompted by actual positive change in the framework of crypto regulation, this upward trend is not as susceptible to sudden reversal as it might have been otherwise.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Open a FREE Trading Account

ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.