Bitcoin’s record-breaking surge to an all-time high of $112,000 on May 22 sparked soaring investor optimism. This rally, fueled by the White House’s delay of 50% tariffs on EU goods, has since been tempered by geopolitical tensions and heightened market emotions.
Social sentiment data from Santiment highlights how extreme optimism coincided with Bitcoin’s peak, quickly followed by a correction triggered by renewed tariff fears. Despite the federal court ruling against the tariffs providing some relief, ongoing trade war concerns continue to fuel volatility. Mentions of “tariff” and “trade war” spiked sharply, mirroring patterns seen during April’s pullback.
While social media chatter remains bullish, with Bitcoin options now betting on a $300K price target, the market’s emotional swings suggest uncertainty ahead. Blockchain data shows strong fundamentals with significant BTC withdrawals from exchanges and older coins reactivating, supporting a more sustainable rally beyond mere speculation.
Whale activity remains crucial, as institutional profit-taking at recent highs increases the risk of a liquidation cascade if prices fall below key support levels near $104,810.
As Bitcoin embarks on its path toward $300K, geopolitical risks and emotional trading behaviors continue to shape near-term price movements—underscoring the volatile road ahead despite underlying bullish momentum.
