Bitcoin Maintains Stability Above $105K Amid Overheating Concerns

As of June 2, 2025, Bitcoin has demonstrated remarkable stability, holding steady above the $105,000 mark with minimal weekend volatility. Despite a slight 0.4% price movement, the cryptocurrency remains resilient even as CryptoQuant’s latest report raises alarms about potential overheating in the BTC market. On-chain data indicates a significant surge in Bitcoin demand, reaching 229,000 BTC over the past month—levels reminiscent of the peak observed in December 2024. However, whale accumulation patterns are showing signs of slowing down, suggesting a possible shift in market dynamics. Currently, BTC is trading at 104,743.93 USDT, maintaining its strong position in the market. This article delves into the key factors influencing Bitcoin’s price stability and the implications of the overheating signals highlighted by CryptoQuant.

Bitcoin Holds Above $105K as CryptoQuant Warns of Overheating Signals

Bitcoin steadied NEAR $105,000 as Asian markets opened, showing minimal weekend volatility with just 0.4% price movement. The stability comes despite CryptoQuant’s latest report flashing warning signs about overheating conditions in the BTC market.

On-chain data reveals Bitcoin demand surged to 229,000 BTC over the past month - approaching December 2024’s peak levels. Whale accumulation patterns show signs of slowing, with balances growing just 2.8% recently. These metrics suggest the rally that propelled BTC to $112,000 may be exhausting its short-term momentum.

The $120,000 level emerges as critical resistance, representing the upper band of Traders’ On-chain Realized Price where unrealized profits WOULD hit 40%. Historically, this threshold has marked local tops. While CryptoQuant’s Bull Score Index remains elevated at 80, the combination of peak demand growth and expanding profit margins hints at potential consolidation ahead.

Brazilian Fintech Méliuz’s Bitcoin Bet Triggers 8% Stock Plunge

Méliuz, a Brazilian fintech firm, has sparked market turbulence with its aggressive pivot toward Bitcoin. The company’s announcement of a primary share offering to fund additional cryptocurrency purchases sent its stock tumbling over 8% in a single trading session. This strategic shift mirrors the path of U.S.-based MicroStrategy, positioning Méliuz to potentially become Brazil’s first Bitcoin-focused treasury company.

The share offering aims to raise up to 450 million Brazilian reais ($78.6 million), with an initial tranche of 17 million shares targeting 150 million reais ($26.2 million). The capital injection would expand Méliuz’s existing bitcoin holdings of 320.25 BTC ($33.55 million), building on its initial $4.13 million investment made in March 2025. Market observers are divided on whether this represents visionary treasury management or excessive risk-taking in volatile crypto markets.

Bitcoin ETFs Outpace Gold ETFs With $5.23B Surge—Are Investors Ditching Old Safe Havens?

Bitcoin exchange-traded funds (ETFs) recorded $5.23 billion in net inflows during May 2025, starkly contrasting with Gold ETFs, which saw $1.58 billion in outflows. BlackRock’s IBIT led the charge with $5.9 billion in inflows, even as the broader sector experienced outflows on May 31.

Bitcoin’s price ROSE 11% over the month, climbing from $94,200 to $104,000, while gold ETFs suffered their sharpest withdrawals this year. The crossover point came around May 12, when BTC ETF flows first surpassed those of gold—a potential inflection point in institutional asset preference.

Data from Soso Value and BOLDETF.com confirms the trend. BTC ETF inflows peaked above $8 billion mid-month before settling at $5.25 billion, whereas gold ETFs plummeted to nearly -$5.5 billion before a partial recovery. The divergence underscores growing institutional confidence in digital assets as alternatives to traditional SAFE havens.

Silk Road Founder Ross Ulbricht Receives $31.4M Bitcoin Donation Following Prison Release

Ross Ulbricht, the convicted founder of the darknet marketplace Silk Road, has received a staggering 300 BTC donation worth approximately $31.4 million from an anonymous source. The transaction, tracked by Arkham Intelligence, comes months after Ulbricht’s controversial pardon by former U.S. President Donald TRUMP in January.

Blockchain records show Ulbricht swiftly moved the funds on June 1, allocating $31.29 million to one address and $10,000 to another. This dwarfs previous donations to his Free Ross campaign, which collected $270,000 in Bitcoin shortly after his release from a 12-year prison sentence.

Concurrently, Ulbricht’s auction of personal memorabilia on Bitcoin-only platform Scarce City has generated $1.8 million ahead of its June 2 closing date. Items include prison artifacts and pre-arrest belongings, marketed as historical curiosities for crypto enthusiasts.

Elon Musk Announces XChat with ’Bitcoin Style’ Encryption, Sparking Crypto Community Debate

Elon Musk revealed plans for XChat, a new messaging feature on X (formerly Twitter) promising encrypted communications, disappearing messages, and file transfers. The announcement drew immediate scrutiny when Musk described the system as using "Bitcoin style" encryption built on Rust—a claim met with skepticism from Bitcoin developers.

Critics including Bitcoin Core developer Luke Dashjr and JAN3 CEO Samson Mow were quick to point out that Bitcoin doesn’t employ encryption for confidentiality, relying instead on cryptographic hashing and digital signatures. The technical ambiguity overshadowed Musk’s broader vision for X as an everything-app, coming amid renewed interest in his ventures.