Bitcoin is trading at $106,384 with a 1.0% daily gain as of May 21, according to CoinGecko, marking a pivotal return to six-figure territory.
The surge has captured market attention and sparked commentary from APT Miner, a rising voice in the crypto community on X, who shared cautionary insights from Unity Wallet COO James Toledano.
Analysts warn Bitcoin rally is short-lived, trade truce alone not enough to break $110,000
James Toledano says a breakout to $110,000 for Bitcoin is within sight, but he warns that the crypto asset’s rally is currently being driven more by sentiment than strong fundamentals.… pic.twitter.com/SS5QecZGbB— APT Miner (@APTminer_) May 20, 2025
Toledano said the surge, which saw Bitcoin break the six-figure barrier for the first time since February, is largely driven by sentiment surrounding the easing of U.S.-China trade tensions, not by strong fundamentals.
“The rally looks hollow,”
he noted.
“It was driven by emotion and a political gesture, not economic strength.”
President Donald Trump’s retreat from aggressive tariff measures and a thaw in trade relations with Beijing boosted risk assets across the board. Investors, including those in crypto, welcomed news that the two countries agreed to roll back tariffs by 115%, easing economic pressure and pushing global markets higher.
However, Toledano cautioned that this is a temporary lift. He pointed to ongoing macroeconomic uncertainty, lack of regulatory clarity, and inconsistent institutional demand as limiting factors for Bitcoin’s next move. Without those elements, he said, the market may enter a period of consolidation before attempting new highs.
While acknowledging strong inflows into Bitcoin ETFs, Toledano argued that the asset remains vulnerable to shifts in traditional finance. Still, he believes crypto’s decentralized nature gives it resilience. “Unlike traditional stocks, digital assets often rebound faster and attract capital in times of crisis,” he said.
He added that cryptocurrencies are increasingly viewed as macro hedges, reacting to global turmoil much like traditional financial markets, yet retaining the potential to outperform them in prolonged instability.
Meanwhile, HTX Research has identified a growing bullish shift in crypto markets. In its latest HTX DeepThink report, analyst Chloe highlights a mix of steady volatility and surging call option activity as signs that traders are rotating into high-potential altcoins, suggesting broader confidence, even as Bitcoin’s rally faces scrutiny.
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