Today, May 20, 2025, the price of Bitcoin (BTC) is around $104,738. In the last 24 hours, an increase of 0.98% has been recorded.
However, several fundamental reasons explain the fluctuations recently observed in the price of Bitcoin:
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🔻 Main reasons for the decline in the price of Bitcoin
1. Downgrade of the United States credit rating:
Moody’s has downgraded the credit rating of the United States from Aaa to Aa1. This has increased economic uncertainty among investors, leading to a flight from risky assets.
2. Changes in positions of institutional investors:
Some large institutional investors have begun to reduce their positions in Bitcoin ETFs. For example, Millennium Management has reduced its stake in the iShares Bitcoin Trust ETF by 41%.
3. Class action against MicroStrategy:
MicroStrategy, one of the largest institutional holders of Bitcoin, is facing a class action for allegedly making misleading statements regarding its Bitcoin investments. This could erode investor confidence.
4. Technical selling pressure and liquidations:
In the last 24 hours, approximately $87 million in long positions in Bitcoin futures have been liquidated. This has put downward pressure on the price.
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📈 Market outlook
Bitcoin is fluctuating between short-term resistance levels of $104,600 and $109,000. Breaking through these levels is crucial for the continuation of the upward trend. However, the current macroeconomic uncertainty and institutional movements may make it difficult to break through these levels.
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Bitcoin and the cryptocurrency market in general are currently influenced by macroeconomic developments and the behavior of institutional investors. Investors are advised to act with caution considering these factors.
