As of May 13, 2025, the cryptocurrency market is experiencing a downturn, with Bitcoin (BTC) trading at approximately $102,674 and Ethereum (ETH) at around $2,458. This decline is influenced by several key factors:
๐ Profit-Taking Ahead of Inflation Data
Investors are engaging in profit-taking following recent price surges, particularly in anticipation of upcoming U.S. inflation data. This cautious approach is leading to a pullback in prices across major cryptocurrencies.
๐ฅ Liquidation of High-Leverage Positions
A significant number of high-leverage long positions have been liquidated, especially around the $100,587 level for BTC. This has intensified selling pressure and contributed to the market's decline.
๐ Anticipation of U.S. CPI Release
The market is awaiting the release of the U.S. Consumer Price Index (CPI) data. Expectations of persistent inflation could influence monetary policy decisions, impacting risk-on assets like cryptocurrencies.
๐ Whale Movements
Large Bitcoin holders, known as "whales," have been moving significant amounts of BTC to exchanges. Such movements often signal potential sell-offs, adding to market volatility.
๐ CME Futures Gap
A CME futures gap has been identified in the $92,000 to $93,810 range. Historically, such gaps tend to be filled, suggesting a possible further decline in BTC's price to close this gap.
These factors combined are contributing to the current downturn in the crypto market. Investors are advised to stay informed and exercise caution during this period of heightened volatility.