The cryptocurrency market remains under pressure as it navigates a phase of consolidation. Over the past 24 hours, the prices of all top 10 coins by market capitalization have experienced declines. The overall cryptocurrency market cap has dropped by 4.5%, moving from $3.55 trillion to $3.45 trillion, while total trading volume has risen to $130 billion, experiencing an uptick over the last two days.
Key points:
- The crypto market is in a stabilization phase.
- Bitcoin (BTC) has decreased to $105,800.
- Market analysts suggest that this phase may represent a correction rather than a bearish trend reversal.
- BTC is likely to continue trading within its current range.
- Recent inflow streaks for US spot BTC ETFs have been disrupted.
- Unexpected inflationary pressures could lead to increased volatility and impact crypto prices.
Crypto Winners & Losers
As of the latest updates, all top 10 cryptocurrencies have posted losses. Bitcoin (BTC) has fallen by 2%, sitting at $105,816, compared to $107,940 yesterday. This decline follows an intraday high of $108,847.
Ethereum (ETH) has experienced a decrease of 3.8%, currently trading at $2,623 after reaching an intraday peak of $2,732.
Among the top performers, Dogecoin (DOGE) has suffered the steepest drop, plummeting 8.7% to $0.2052.
In contrast, only one coin among the top 100, LEO Token (LEO), is showing positive movement today with a 1.1% increase to $9.14.
Optimism (OP) has seen the most significant decline in this group, down 12.7% to $0.6863.
James Toledano, Chief Operating Officer at Unity Wallet, explains that Bitcoin’s recent rally seems to have factored in bullish catalysts such as institutional inflows and geopolitical uncertainty. He observes that,
“With open interest still high and funding rates relatively neutral, this sideways movement reflects a temporary pause rather than a definitive trend reversal.”
As liquidity tightens ahead of forthcoming economic reports, Toledano notes that “traders are likely adopting a wait-and-see strategy.” He perceives this situation as stabilization rather than stagnation, indicative of a classic consolidation phase following robust gains earlier in the month.
‘New Normal Created by Trump Threatens Economic Stability’
Toledano also suggests that the current price compression could lay the groundwork for a larger breakout or breakdown, contingent upon macroeconomic indicators and market sentiment. He emphasizes that,
“All bets are off as we prepare for what may emerge from President Trump’s administration. This new normal presents risks to any perception of economic stability and consistency.”
Ruslan Lienkha, chief of markets at crypto platform YouHodler, shares a similar sentiment, stating that the activity in the market appears to be a correction rather than a bearish downturn. He notes that throughout much of this year, Bitcoin has navigated the $90,000 to $110,000 range, establishing a significant consolidation zone.
“This area is dense with market orders, indicating strong trading interest and potential support. Given these factors, it’s likely that BTC will remain within this range for an extended period, possibly laying the groundwork for another upward move toward a new all-time high,” adds Lienkha.
$BTC options open interest has recently surged to an all-time high of $46.2 billion, reflecting an increase of $25.8 billion from previous lows. This notable growth outpaces futures, indicating a heightened demand for advanced hedging and strategic maneuvers among increasingly sophisticated market participants. pic.twitter.com/YXp24CRVfC — glassnode (@glassnode) May 29, 2025
As Lienkha explores the distinctions between BTC and ETH, he mentions Bitcoin’s growing reputation as a portfolio diversifier, despite smaller allocations. Ethereum, meanwhile, is still viewed as a more niche option, making widespread institutional adoption a more distant prospect. Nevertheless, due to its robust fundamentals, Ethereum continues to be a favored choice for retail investors looking for diversifying assets.
Looking ahead, Lienkha anticipates that Bitcoin will continue to correlate with US tech equity indices in the medium term, as both react to economic factors like interest rates and liquidity. However, this correlation may weaken over time as Bitcoin evolves into an asset class driven by its unique fundamentals.
Levels & Events to Watch Next
Currently, Bitcoin trades at $105,816, retreating from its all-time high of $111,814 achieved the previous Thursday. It is down 5.5% since then but remains up 1.6% week-over-week. Over the last few hours, BTC has stayed around the $106,000 mark.
Notably, it has breached two support levels within two days, with traders now focusing on the $105,000 level. Betideas.com spokesperson Steven McQuillan remarked that BTC surged $15,000 in value throughout May, and many traders expect this trend to persist. “Our analysts estimate an 80% chance of seeing a new all-time high in 2025,” he stated.
Accompanying this market activity, the Fear and Greed Index has continued its decline, falling from 65 to 61 over the course of a day, and down from 76 observed last Friday. While it remains in the greed zone, the index is trending toward neutrality, signaling rising fear that may exert downward pressure on prices. Although this could lead to a bearish market, it may also open doors for buying opportunities.
On May 29, US spot exchange-traded funds (ETFs) for BTC experienced a notable shift with a net outflow of $385.65 million, breaking their inflow streak. BlackRock remained the exception, recording an inflow of $125.09 million. Conversely, US ETH spot ETFs enjoyed a net inflow of $91.93 million, including $50.45 million from BlackRock.
Toledano further noted that market volatility could heighten as recent data on PCE inflation, jobless claims, and Nvidia’s record-setting $26 billion quarter are digested. He stated, “A potential combination of soft inflation, a cooling labor market, and solid tech earnings from a major player like Nvidia could create a favorable environment for Bitcoin, given its tendency to track tech-driven surges. However, unexpected inflationary strength could still inject volatility and apply pressure to crypto prices, despite the positive influence of Nvidia.”
Quick FAQ
Why did crypto move against stocks today?
Despite the downturn in the cryptocurrency market, the stock market saw modest gains, with the S&P 500 up by 0.4%, the Nasdaq-100 rising 0.21%, and the Dow Jones Industrial Average increasing by 0.28%. The stock market’s positive response to Nvidia’s earnings was evident, although the increases were limited. Investors remain vigilant due to multiple judicial developments related to Donald Trump’s “reciprocal” tariffs.
Is this dip sustainable?
Experts suggest that the market is currently experiencing a correction rather than a definitive bearish trend, gearing up for a potential upward trajectory. However, it remains highly responsive to macroeconomic factors, including interest rates and liquidity.
The post Why Is Crypto Down Today? – May 30, 2025 appeared first on Finance Newso.
