Daily Crypto Signals: Bitcoin Holds $109K as Trump Media Buys $2.5B BTC, XRP Faces Bearish Pressure
Trump Media reverses its earlier denial to confirm a massive Bitcoin acquisition plan, while institutional investors continue accumulating
Quick overview
- Trump Media confirms a $2.5 billion Bitcoin acquisition plan, reversing its earlier denial.
- Institutional investors are increasingly accumulating Bitcoin, viewing it as a strategic reserve amid economic uncertainty.
- XRP faces potential decline due to weakening derivatives markets and reduced institutional demand, with a risk of dropping 16%.
- Ethereum's open interest surged by 72% following a significant investment, indicating increased trading activity.
Trump Media reverses its earlier denial to confirm a massive Bitcoin acquisition plan, while institutional investors continue accumulating BTC despite recession fears. Meanwhile, XRP risks a 16% decline amid weakening derivatives markets and reduced institutional demand.
Crypto Market Developments
Trump Media and Technology Group’s unexpected announcement of a $2.5 billion capital increase especially to buy Bitcoin highlights the notable institutional swings the crypto market underwent this week. This development coincides with Circle’s major IPO filing on the New York Stock Exchange and mixed signals from derivatives markets across major cryptocurrencies.
The temporary suspension of US-EU import tariffs helped stock markets; the S&P 500 climbed 1.5% on May 27. Global economic worries still exist, though, which complicates the backdrop for bitcoin markets. The 6.3% decline in US durable goods orders in April points to possible economic slowness approaching.
With businesses seeing digital assets as strategic reserves instead of speculative investments, institutional adoption keeps driving crypto narratives. This change is especially clear in the corporate treasury plans developing in many different fields.
Bitcoin Trades Near $110,000 Amid Corporate Interest
With its market capitalization currently surpassing that of Internet giants Google and Meta, Bitcoin BTC/USD keeps its position around $110,000 amid more general economic uncertainty. The robustness of the cryptocurrency results from increasing corporate acceptance as well as from its developing function as a barrier against systematic financial hazards.
After first rejecting prior rumors, Trump Media and Technology Group made news verifying a $2.5 billion fund round to buy Bitcoin. With a 0% rate, the transaction consists in $1.5 billion in stock sales and $1 billion in convertible senior secured bonds; the deal should finish May 29. “We view Bitcoin as an apex instrument of financial freedom,” CEO Devin Nunes said, “now Trump Media will hold cryptocurrency as a crucial part of our assets.”
Following the success of MicroStrategy (now Strategy), which has produced over $8.2 billion in gains in 2025 via comparable methods, the announcement marks a major endorsement of Bitcoin’s treasury strategy. This business adoption pattern points to a possible trajectory of Bitcoin toward $112,000 resistance not depending just on more general economic development.
Still, Bitcoin stays strongly linked with conventional markets, showing a 30-day correlation above 70% with the S&P 500. From only 2% a month ago, traders now project a 41% likelihood the Federal Reserve will keep interest rates through September. Given the US fiscal situation, higher rates indicate possible future liquidity injections even while they usually strain risk assets.
Ethereum Open Interest Up By 72%
After SharpLink Gaming revealed a $425 million private investment to become the first Nasdaq-listed Ethereum treasury firm, Ethereum saw a notable surge. Mirroring Strategy’s successful Bitcoin treasury strategy, the gaming company will purchase about 120,000 ETH.
Under direction by Ethereum co-founder Joe Lubin, this initiative has been positioned as providing a “public ETH proxy for funds that cannot hold tokens directly.” By removing tokens from circulation, the acquisition of 120,000 ETH, probably staked, could help to compress supplies.
After the news, Ethereum ETH/USD price jumped 4.5%; futures open interest peaked at $36.1 billion, a $3.5 billion rise in 24 hours. Ethereum open interest rose 72% over the past month, mirroring more trade activity.
Technical study of ETH’s daily chart shows a declining triangle pattern that points to a possible bullish breakout. Aiming for the $3,100-$3,200 range, a move above $2,677 would match past resistance levels. Indicating good momentum without being too bought, the Relative Strength Index at 68.50 confirms this optimistic view.
Notwithstanding the encouraging changes, problems still exist. From Q1 2024 levels, Ethereum network fees have dropped dramatically; yet, since May 9, they have kept above $1 million daily. Ten leverage-driven pump signals have accompanied the 48% price increase over the past thirty days; eight of them produce negative returns, therefore underscoring the erratic character of current rallies.
XRP Risks Further Decline?
XRP XRP/USD, despite a 45% rally from April 7 lows to current levels around $2.31, is under increasing negative pressure. The crypto continues to be 31% behind its January 2025 peak of $3.40, which calls questions over its capacity to maintain increasing velocity.
With neutral funding rates and diminishing open interest in futures markets, derivatives markets point to possible problems ahead. Down 9.6%, from its three-month peak of $3.52 billion on May 13, XRP’s open interest has decreased to $3.2 billion. This slow down in trade activity points to inadequate capital and energy to raise prices.
For XRP holders, the institutional retreat from XRP investment products is more troubling. Breaking an amazing 80-week inflow trend and bringing month-to- date outflows to $28.6 million, exchange-traded instruments had the highest weekly outflow of $37.2 million. This stands in stark contrast to Bitcoin, Ethereum, and Solana, which at the same period showed notable net inflows.
Technical study finds a declining triangle pattern building since May 14 marked by flat support and downward-sloping resistance. Should the 200-day Simple Moving Average support around $2.31 fall short, the pattern points to a possible 16% drop toward $1.96.
Bulls are indicating declining momentum by failing to keep XRP above the 200-day SMA. A closure below this level might set off more sales below the support of the triangle at $2.28. On the other hand, a clean breakout above the triangle’s resistance at $2.35 would destroy the bearish pattern and maybe aim at the psychological level $3.00.
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