Key takeaways:
Bitcoin could turn parabolic if prices move above $115,000 to liquidate more than $7 billion in short positions.
Onchain indicators enter overheated territory, suggesting prolonged profit-taking from BTC investors.
Bitcoin (BTC) showed strength on May 27, briefly tagging $110,700 after a strong US equities market open and the Trump Media and Technology Group’s announcement that it would raise $2.5 billion for a Bitcoin treasury.
Bitcoin’s bullish momentum aligns with the favorable US financial conditions, as noted by Ecoinometrics. The macroeconomic-focused Bitcoin newsletter highlighted that the National Financial Conditions Index (NFCI) shows a rapid shift to ultra-loose territory after a tightening phase in February 2025.
The NFCI, published by the Federal Reserve Bank of Chicago, tracks stress in the financial system by aggregating measures like credit spreads, leverage, and funding conditions. When the index moves into looser territory, it reflects easier access to capital and reduced market stress—conditions that