The cryptocurrency market has experienced a minor and anticipated setback. Most of the top 100 cryptocurrencies by market capitalization have seen declines over the past 24 hours. The overall market capitalization has fallen by 2.3%, now totaling $3.55 trillion, while the total trading volume has reached $100 billion.
TL;DR:
Crypto market rally stalls;
BTC approaches ATH, then decreases to $109,180;
Traders are expecting upward movement;
BTC has a 10% probability of reaching $130,000 by the end of June;
Digital asset investment products drew in $3.3 billion last week;
Today’s dip is not concerning.
Crypto Winners & Losers
As of now, only three of the top ten cryptocurrencies by market cap have seen price increases within the last day. Ethereum (ETH) is slightly up by 0.2%, remaining mostly stable at a current price of $2,585, with a daily peak of $2,720.
Tron (TRX) has risen by 1.5% to $0.276, and Binance Coin (BNB) has climbed 0.8% to $679. Notably, there are reports suggesting that large investors, or ‘whales’, are shorting BNB more rapidly than smaller retail investors, potentially forming a bear trap. This could lead to an increase in BNB’s price as whales push it higher, triggering numerous stop orders for short positions.
Something Strange Is Happening With BNB!
Whales are exhibiting a stronger inclination to short BNB compared to retail investors, which is a noticeably different trend compared to other altcoins.
Additionally, a critical observation indicates that buying pressure has diminished significantly relative to last week, pointing towards… pic.twitter.com/dQqeUHafO4
— Alphractal (@Alphractal) May 23, 2025
Meanwhile, Bitcoin (BTC) has seen a 0.6% drop, bringing its trading price to $109,181. After reaching an all-time high of $111,814 on May 22, BTC is down 2.4% from that peak, following an intraday high of $111,807—just shy of setting a new record.
XRP has faced the steepest drop among the top cryptocurrencies, falling 2.2% to a price of $2.3. From the top 100 cryptocurrencies, only 12 managed to record price gains today. Quant (QNT) stands out as the top performer, showing a significant increase of 10.2% to $106.1.
In contrast, Monero (XMR) has suffered the largest decline, down 6% to $392.
The cryptocurrency market continues to be significantly affected by macroeconomic factors, with growing uncertainty in the macro environment. James Toledano, Chief Operating Officer at Unity Wallet, emphasized that Bitcoin’s well-known volatility presents considerable risk, as its price remains vulnerable to quick fluctuations driven by market sentiment, regulatory changes, and macroeconomic dynamics.
Many analysts have also cautioned in recent days that a corrective phase may be forthcoming. Typically, a pullback follows a period of rapid price appreciation. Following the robust rally observed in recent days, investors are likely taking profits, leading to short-term sell-offs.
Additionally, ongoing discussions regarding potential regulatory actions in key markets could induce a cautious stance among investors.
10% Chance for BTC to Surpass $130,000
Nick Forster, Founder of the decentralized onchain options platform Derive.xyz, noted that while the rally has shown signs of stalling, Bitcoin’s and Ethereum’s volatility has remained consistent at 45% and 72%, respectively.
Currently, there is a 10% likelihood that Bitcoin will exceed $130,000 by the end of June, while Ethereum has a 15% chance of surpassing $3,100 in the same timeframe.
Looking ahead, “traders are gearing up for a possible upward move in the short term, as reflected by a substantial purchase of call options at the $112,000 strike price for BTC set for May 30,” stated Forster. However, there is also a developing expectation that Bitcoin will stay below $110,000 by June 27, with a considerable volume of call options being sold for that date.”
Sustained uptrends require fresh demand.
Notice the sharp rise in $BTC First Buyers from July–Dec 2024 and again in Mar–May 2025 – both aligned with major price expansions. These inflows signal new capital entering the system, adding structural strength: https://t.co/gaoF8tCXup pic.twitter.com/61Fu10iVX8
— glassnode (@glassnode) May 26, 2025
Furthermore, market makers are reported to be short gamma. As Bitcoin and Ethereum rise, these market players may be compelled to buy additional assets for hedging purposes, potentially causing a short-term price surge.
Traders on Derive.xyz are positioning themselves for a bullish movement with Bitcoin while also taking advantage of low volatility, as Forster highlighted. “In the last 24 hours, 55.6% of the traded premiums were calls, compared to 22.3% for puts. For Ethereum, the distribution is more evenly matched, indicating a more uncertain scenario and relatively priced volatility,” he concluded.
Levels & Events to Watch Next
Following Bitcoin’s all-time high of $111,814 last Thursday and a brief peak of $111,807 during intraday trading, the cryptocurrency has adjusted to $109,181.
Notable resistance levels are identified at $109,653, $111,935, and $113,300. Meanwhile, support levels are positioned at $108,731 and subsequently at $107,078. A failure to maintain this latter support could lead BTC to drop to roughly $105,905.
Bitcoin Price Chart. Source: Tradingview
It’s worth mentioning that the Fear and Greed Index has slightly decreased from 69 to 68, yet remains within the positive territory, indicating ongoing bullish sentiment and investors’ willingness to take risks.
Source: CoinMarketCap
Additionally, there are currently no updates on the US spot Bitcoin ETFs flow for today; however, a CoinShares report revealed that digital asset investment products attracted $3.3 billion in inflows last week, contributing to a streak of six weeks totaling $10.5 billion. Year-to-date inflows have reached an impressive $10.8 billion.
Source: CoinShares
However, several cautionary signs warrant attention. Reports suggest that Trump Media & Technology Group intends to raise $3 billion aimed at acquiring digital assets, including Bitcoin. This company, associated with Truth Social and linked to the Trump family, raises ethical and regulatory questions regarding potential impacts on the crypto market.
In India, the cryptocurrency industry is reportedly lobbying for a retraction of the tax laws established in 2022, which have driven over 90% of local crypto trading outside the country.
India’s crypto industry pushes for tax cuts as New Delhi warms to former pariah sector https://t.co/SoNaVywGfp
— Financial Times (@FT) May 27, 2025
Furthermore, in Thailand, the Securities and Exchange Commission (SEC) has restricted the use of its tokenized government bonds, G-Token, as a payment method. Meanwhile, Blockchain Group in France is looking to acquire an additional $72 million worth of Bitcoin following a successful bond sale worth $71.85 million.
The Blockchain Group announces a convertible bond issuance of ~€63.3M to pursue its Bitcoin Treasury Company strategy, bringing its total potential holdings to ~1,437 BTC after completion
Full Press Release (EN): https://t.co/Vw2mGH84Dt
Full Press Release (FR):… pic.twitter.com/xDky2hrU4s
— The Blockchain Group (@_ALTBG) May 26, 2025
Quick FAQ
Why did crypto move with stocks today?
The recent decline in cryptocurrency prices coincides with a minor drop in stock values, with the S&P 500 down 0.67%, the Nasdaq-100 decreasing by 0.93%, and the Dow Jones Industrial Average falling by 0.61%. This downturn in crypto appears to be a standard market correction rather than stemming directly from stock market movements.
Is this dip sustainable?
Given the previously mentioned factors, this current dip does not raise significant concerns. It is a common occurrence in a volatile marketplace, and the overall robustness of the global market capitalization reflects continued investor interest.
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