As of the evening of May 12, 2025, the cryptocurrency market is showing a decline, especially in the altcoin segment. The main reasons for this downturn include:

📉 Key factors for the market decline

1. Tight rhetoric from the U.S. Federal Reserve: Expectations for interest rate cuts have diminished due to strong signals from the Fed. This reduces the attractiveness of risky assets like cryptocurrencies.

2. Outflow of funds from Bitcoin ETFs: About $680 million has been withdrawn from U.S. spot Bitcoin ETFs, indicating a decline in institutional interest and increasing pressure on the market.

3. Strong U.S. economic data: Positive macroeconomic indicators from the U.S. reduce the likelihood of monetary policy easing, negatively affecting risky assets.

4. Technical correction after the rise: After Bitcoin reached $106,000, a technical correction is observed as traders take profits.

5. High level of greed in the market: The Fear and Greed Index shows a value of 70, indicating an overheated market and potential correction.

6. Release of new tokens: A significant volume of tokens, such as 171.88 million ENA, is expected to be unlocked, which could exert additional pressure on altcoin prices.

Conclusion: The current decline in the cryptocurrency market is driven by a combination of macroeconomic factors, technical correction, and intramarket events. Investors should closely monitor further economic data and Fed decisions as they may impact future market direction.

In my opinion, the current decline is a temporary correction, not the beginning of a full-fledged downtrend.

Why a correction is likely:

1. After the rise to $106,000 BTC, market correction is needed — traders are taking profits.

2. Institutional outflows from ETFs may be a reaction to macroeconomic news but do not signal a mass exit from the market.

3. The greed index at high levels usually leads to a short-term decline, after which a new wave of growth occurs.

4. Total2 (altcoin capitalization) has yet to break key support — the market structure remains bullish.

However: if there are no new positive triggers this week, such as weaker economic data from the U.S. or new ETF launches, the downturn may prolong.