$BTC

What’s Driving Bitcoin’s Drop Today?

Despite Bitcoin’s strong rally in early May, it faced another rejection at the $105,000 resistance level today. As of May 17, 2025, Bitcoin fell to around $103,000, triggering concern among traders and investors.

Here are the key reasons behind today’s pullback:

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1. 🧱 Strong Rejection at $105K Resistance

Bitcoin was rejected multiple times at the $105,000 zone. This resistance has become a psychological and technical barrier, leading to profit-taking by whales and large investors. More than 30,000 BTC have reportedly been moved to exchanges in the past 72 hours.

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2. 📊 Surge in Exchange Inflows

On-chain data reveals a 12% increase in BTC inflows to centralized exchanges between May 15–17. This often signals selling intent, further adding to downside pressure.

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3. 🧨 FTX Creditors Distribution Concerns

The bankrupt FTX exchange is expected to distribute over $5 billion to creditors starting May 30, 2025. Many fear this capital injection could trigger a market sell-off, especially if recipients choose to cash out their crypto holdings.

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4. 🏦 Institutional Pullback

Some large hedge funds, including Millennium Management, have reduced their exposure to Bitcoin ETFs in Q1 2025. This suggests waning short-term bullishness among institutional players.

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5. 📉 Derivatives Market Turns Bearish

Derivatives data shows a negative net buying volume, implying more traders are opening short positions. This aligns with the bearish sentiment and increases the risk of further downside in the short term.

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🧠 Final Thoughts

Bitcoin remains in a macro uptrend, but this correction highlights growing short-term uncertainties. Traders should watch for a potential bounce near the $100K psychological support, or prepare for deeper retracements if bearish momentum continues.

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