The cryptocurrency market is experiencing a noticeable decline in May 2025, due to several interconnected factors affecting investor confidence and market stability. Here are the main reasons:
1. Trade tensions and new tariffs
The administration of President Donald Trump announced new tariffs, increasing uncertainty in global markets. This announcement led to a decline in the price of Bitcoin to around $108,000 after it had recently surpassed $112,000.
2. Lack of clarity in legal regulations
Since Trump's return to the presidency in January 2025, regulatory policies related to cryptocurrencies remain unclear, raising concerns among investors and negatively impacting the market.
3. Anticipation of decisions from the U.S. Federal Reserve
Investors are awaiting decisions from the Federal Reserve regarding interest rates, creating an atmosphere of anticipation and caution.
4. Profit-taking after previous highs
After Bitcoin reached its all-time highs, many investors took profits, resulting in a decline in prices.
