Why is the Crypto Market Down Today? BTC Falls Below $103K, Ethereum Down 5%
TLDR
- Bitcoin dropped from $107,114 to around $102,900, falling below the psychological $103,000 threshold
- $651 million worth of crypto positions were liquidated in 24 hours
- Ethereum fell 5.08%, making it one of the biggest losers among top cryptocurrencies
- Dogecoin showed resilience with a slight 0.28% gain, the only top-10 crypto in the green
- Despite the current dip, analysts maintain a bullish long-term outlook for Bitcoin with potential targets of $118K and $135K
Market Correction Hits Major Cryptocurrencies
The cryptocurrency market experienced a correction today with Bitcoin dropping below the $103,000 mark and Ethereum falling over 5%. The total crypto market capitalization shrank by 0.82% to $3.25 trillion as investors reassessed risks amid macroeconomic uncertainties.
Bitcoin, which had surged to $107,114 on Sunday, is now trading at around $102,900, reflecting a 0.47% decrease over the past 24 hours. The drop pushed BTC below the psychological $103,000 threshold, raising concerns about short-term momentum.
The sudden price movement wasn’t limited to Bitcoin. Ethereum, the second-largest cryptocurrency, saw a sharp 5.08% decline, trading at $2,359.88. Other major altcoins followed the downward trend, with XRP down 1.44%, Cardano losing 3.21%, and TRON falling 4.01%.
Massive Liquidations and Technical Factors
The market volatility has triggered substantial liquidations. Data from CoinGlass shows $651 million worth of positions were liquidated over the past 24 hours as Bitcoin’s price fluctuated between $107,000 and $102,000.
From a technical perspective, Bitcoin’s price swept last week’s high of $105,663 but met with a massive spike in selling pressure. This caused BTC to drop 4.23% from its new high of $107,114 to a local bottom of $102,579.
Analysts suggest the next support for Bitcoin lies near $101,500, while resistance remains at $105,000. Despite the minor dip, Bitcoin continues to show stronger relative performance compared to most altcoins.
Bitcoin is on track to confirm a ‘golden cross’ in the coming days. This pattern occurs when the 50-day simple moving average crosses above the 200-day simple moving average, suggesting potential for a major bull run.
In the past 24 hours – 156,287 traders were liquidated for a total of $670 million 👀$BTC $ETH $SOL pic.twitter.com/sw5ftaRAbL
— Trader Edge (@Pro_Trader_Edge) May 19, 2025
Mixed Performance Across the Market
Not all cryptocurrencies moved in the same direction. Dogecoin (DOGE) was the only gainer among the top ten, up 0.28% to $0.2174. With a market cap of $32.47 billion, DOGE attracted mild buying interest as traders rotated into lower-cap assets.
Stablecoins remained relatively unaffected by the market turbulence. Tether (USDT) held its peg at $1.00 with a trading volume of $96.49 billion. Similarly, USD Coin (USDC) stayed stable at $0.9999, reaffirming the role of stablecoins as liquidity hedges during market fluctuations.
External Factors Affecting Market Sentiment
Several external factors may have contributed to the cautious market sentiment. On May 13, the attempted kidnapping of Pierre Noizat, CEO of Bitcoin exchange Paymium, sent shockwaves through the crypto community. Armed assailants attempted to abduct his pregnant daughter and two-year-old grandchild, raising security concerns among crypto executives.
Another development affecting market sentiment was former US President Donald Trump’s announcement of a dinner with the 220 biggest buyers of $TRUMP, a memecoin launched earlier this year. The dinner has raised questions about the intersection of politics and crypto investments.
These incidents may have undermined investor confidence, prompting a more cautious approach to crypto investments.
Future Outlook Remains Positive
Despite the current downtrend, the overall outlook for Bitcoin remains bullish. Analysts predict BTC could slow down as it enters the support area between $99,800 and $100,300, potentially setting the stage for the next all-time high targets of $118,000 and $135,000.
Investors are advised to monitor global developments and approach the market with caution in the short term. The correlation between Bitcoin and altcoins remains high, meaning any recovery in BTC would likely lift the entire market.
The crypto market is known for its volatility, and the current dip may present buying opportunities for long-term investors willing to weather short-term fluctuations.