Crypto Market Weekly Recap (May 3–9, 2025): Volatility Amid Economic Signals and Policy Shifts
This week, the cryptocurrency market experienced significant fluctuations, influenced by macroeconomic data, policy developments, and investor sentiment.
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📉 Market Volatility Triggered by Economic Data
Bitcoin (BTC) surpassed the $100,000 mark mid-week, reaching an intraday high of $101,370, buoyed by optimism over a new U.S.-U.K. trade agreement and potential progress in trade talks with China. However, stronger-than-expected U.S. economic data later in the week dampened hopes for multiple Federal Reserve rate cuts in 2025. This shift led to a 5% drop in Bitcoin's price, bringing it down to approximately $96,200.
The broader crypto market mirrored Bitcoin's volatility. Ethereum (ETH) declined by 9%, while other major altcoins like Solana (SOL), Dogecoin (DOGE), and Cardano (ADA) experienced losses ranging from 9% to 12%. The total crypto market capitalization decreased by 6.15%, settling at $3.36 trillion.
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🏛️ Policy Developments and Institutional Moves
In a significant policy shift, President Donald Trump signed an executive order establishing a Strategic Bitcoin Reserve, aiming to position the U.S. as a leader in the crypto space. The reserve will be funded by forfeited bitcoins held by the U.S. Treasury, with the intention of bolstering national digital asset holdings.
On the corporate front, Coinbase announced its acquisition of Deribit, a leading crypto derivatives platform, for $2.9 billion. This move is expected to enhance Coinbase's offerings in the derivatives market and attract more institutional investors.
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🔍 Technical Analysis and Market Outlook
Analysts are closely watching Bitcoin's support and resistance levels. A break below the $95,195 support could signal further declines, potentially targeting $90,000. Conversely, if Bitcoin manages to surpass the $99,785 resistance, it may resume its upward trajectory.
Despite the recent volatility, institutional interest remains strong. Inflows into spot Bitcoin ETFs have reached $5.3 billion over the past three weeks, indicating sustained confidence in the long-term prospects of digital assets.
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📊 Current Cryptocurrency Prices
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Note: Cryptocurrency markets are highly volatile. Investors should conduct thorough research and consider their risk tolerance before making investment decisions.
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