Key takeaways:
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Bitcoin price fell 1.4% to $102,460 amid US financial issues, with each day buying and selling quantity up 94%, indicating the return of sellers.
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Moody’s US credit score downgrade to Aa1 and a class-action lawsuit towards Technique add to BTC’s headwinds.
Bitcoin’s (BTC) price has dropped by over 1.4% during the last 24 hours to $102,460 as issues over the well being of the US economic system bitter investor sentiment. Its each day buying and selling quantity has jumped by 94% to $66.6 billion, suggesting that the sell-side exercise is intensifying.
Macroeconomic uncertainty drives Bitcoin price down
Moody’s downgrade of the US credit standing from Aaa to Aa1 on Could 16, citing rising debt and deficits. This has heightened macroeconomic uncertainty, contributing to a decline in Bitcoin’s price on Could 19.
This downgrade and fears of inflation spurred by potential tariff policies below President Donald Trump have rattled monetary markets, growing Treasury yields and triggering risk-off sentiment.
“The 30Y Observe Yield is above 5.00% and the 10Y Observe Yield is up one other +11 bps,” said capital markets commentator The Kobeissi Letter in a Could 19 submit on X, including:
“If the Trump Administration doesn’t intervene right here, 8% mortgages are coming.”
Increased yields improve borrowing prices, hurting companies and customers, particularly amid recession fears and financial issues.
Including to the sell-side strain is the information {that a} class motion lawsuit has been filed against Strategy, the biggest company Bitcoin holder.
According to a Could 19 submitting with the US Securities and Trade Fee (SEC), the corporate faces a class-action lawsuit that accuses Technique officers of failure to precisely signify the character of Bitcoin investments.
🚨 JUST IN: MicroStrategy hit with class motion lawsuit over alleged deceptive statements tied to its Bitcoin technique and $5.9B unrealized Q1 loss. pic.twitter.com/TdJJfUZTRe
— Cointelegraph (@Cointelegraph) May 19, 2025
Technique, holding 576,230 BTC value roughly $59.9 billion at present charges, is a significant participant within the crypto house.
The lawsuit introduces uncertainty in regards to the firm’s monetary stability and casts doubts over its aggressive Bitcoin accumulation technique.
Over $87 million in lengthy BTC positions liquidated
BTC’s drop on Could 19 is accompanied by huge liquidations within the derivatives market, signaling sturdy bearish strain.
Over $87 million value of lengthy Bitcoin positions have been liquidated during the last 24 hours alone, in comparison with $15 million in brief liquidations. Greater than $43 million lengthy BTC positions have been liquidated during the last 12 hours alone, towards simply $2.55 million in brief positions.
Bullish merchants are compelled to shut their positions when lengthy positions are liquidated. Greater than $674 million in leveraged positions have been liquidated throughout crypto belongings prior to now 24 hours.
The dimensions of those liquidations mirrors the interval between April 10, when a complete of $65 million in lengthy BTC positions have been worn out, accompanied by a 6.5% drop in price on the identical day.
In the meantime, Bitcoin’s open interest (OI) has additionally elevated sharply during the last 14 days, up 12% from $70.01 billion on Could 19 to $62.56 billion on Could 5. The OI is now simply 2.3% away from the $71.8 billion all-time excessive recorded on Dec. 19, 2024.
Bitcoin’s bearish divergence
Bitcoin’s drop immediately precedes a interval of rising bearish divergence between its price and the relative strength index (RSI).
The each day chart under reveals that the BTC/USD pair rose between Could 9 and Could 19, forming larger highs. However, in the identical interval, its each day RSI descended from 76 to 63, forming decrease highs, as proven within the each day chart under.
A divergence between rising costs and a falling RSI often signifies weak spot within the prevailing uptrend, usually prompting merchants to take revenue.
The chart above additionally reveals an space of stiff resistance on the upside, stifling BTC’s efforts to rise larger. These are areas outlined by the $104,600 to $109,000 provider congestion zone. Bulls are required to push the price above the all-time high of $109,000 to proceed the uptrend.
“Greater Bitcoin correction has began?” said in style crypto analyst AlphaBTC in his newest Bitcoin evaluation, including that the price is more likely to drop to $100,000 this week in response to the US credit standing being downgraded.
“Almost certainly it is going to be a fast correction in markets, so we watch how $BTC reacts and if it could possibly get again above $103K, or roll over and head to the low $90Ks first?”
This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer entails danger, and readers ought to conduct their very own analysis when making a call.
