The cryptocurrency market today, May 5, 2025, witnessed a significant decline in most digital assets, including Bitcoin, Ethereum, and BNB. These declines are attributed to a combination of economic, political, and technical factors that have affected investor sentiment.

The main reasons for the drop in cryptocurrencies today

1. Geopolitical pressures and economic policies: The announcement by U.S. President Donald Trump of new tariffs led to a decline in investor confidence, negatively impacting digital markets.

2. Decrease in Bitcoin reserves on the Binance platform: Bitcoin reserves have dropped to their lowest levels on Binance, raising concerns about liquidity and leading to additional selling pressure.

3. Liquidation of positions in futures: The futures contracts for cryptocurrencies on Binance experienced widespread liquidations, particularly in XRP, where long positions worth $13.9 million were liquidated within hours, exacerbating the decline.

Performance of futures on Binance

On the Binance platform, futures experienced sharp fluctuations today. The price of Bitcoin fell below $95,000, while BNB dropped to around $590. These movements led to the liquidation of highly leveraged positions, increasing selling pressure in the market.