Bitcoin fell below $103,000: what caused it and what to expect next?

On May 15, 2025, Bitcoin ($BTC ) broke below $103,000 for the first time in weeks, triggering liquidations of long positions worth over $500 million. The sharp decline was a signal for caution in the market and raised questions: is this a short-term correction or the beginning of a deeper downturn?

What caused the decline?

1. Anticipation of inflation data in the U.S.

Traders and institutional investors have begun to lock in profits en masse in anticipation of fresh inflation statistics — the Consumer Price Index (CPI), which is being published today.

The market fears that strong inflation data could push the Fed towards aggressive policy, negatively impacting risk assets, including cryptocurrency.

2. Overall liquidity outflow

Amid macroeconomic uncertainty, there is an outflow of liquidity from crypto exchanges. Many traders are moving assets to stablecoins or fiat, reducing buying pressure and intensifying pullbacks.

3. Chain liquidation of positions

According to Coinglass, amid the price drop, positions worth over $500 million were liquidated, primarily in the futures markets. This intensified pressure and accelerated the decline.

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How does this affect the market?

• Altcoins are following #BTC : $ETH , Solana, XRP, and other assets have also lost between 3% to 7% in a day.

• The Fear and Greed Index has returned to the 'fear' zone, indicating increased anxiety among retail investors.

• Trading volumes have fallen, which may indicate indecisiveness among players awaiting macro statistics.

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What do analysts say?

Analysts from Binance Research and other platforms adhere to two scenarios:

Bullish scenario (if #cpi is soft):

Bitcoin could recover to the $105,000–$108,000 range in the short term.

Bearish scenario (if inflation turns out to be high):

The decline may continue to the $97,000–$99,000 zone with an increase in sell-offs and panic.

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Conclusion

The drop in BTC below $103,000 is not just a technical correction but a reaction to global economic risks. It is important for investors to remain calm, monitor inflation data, and be prepared for increased volatility.