Hey crypto enthusiasts! Are you ready to dive into a week filled with excitement and real numbers in the world of $BTC Bitcoin? Forget spreadsheets, and let’s tell the story of the past seven days (from May 24, 2025, to May 31, 2025) in a direct and engaging way.
Bitcoin's journey in the last week: Numbers speak for themselves!
The week began with Bitcoin trading around $107,763 on May 24. We saw a slight positive push at first, as the price rose to about $109,455 by May 26, hitting a weekly high of around $110,718 on May 27. This initial rise reflected some cautious optimism in the market, perhaps a silent accumulation by investors.
But the mood quickly reversed. From the peak of $110,718, Bitcoin began a harsh downward journey. By May 31, the price closed at around $103,737. This means that the king of cryptocurrencies lost about 3.78% of its value during the week! A significant number that warrants a pause to consider its causes.
The real reasons behind this stark decline!
Why did Bitcoin crash like this? It wasn't just random fluctuations; there were real market forces driving prices down:
• Shock from US-China trade negotiations: The most impactful news was the statement from US Treasury Secretary "Scott Piesen" that trade negotiations with China are "somewhat stalled." This political and economic ambiguity triggers a wave of "risk aversion" globally. When investors are concerned about the global economy, they tend to pull their money out of high-risk assets like cryptocurrencies and seek safe havens.
• Tsunami of liquidations in the futures market: The market witnessed massive liquidations exceeding $683.4 million in cryptocurrency futures in less than 24 hours! More than $617 million of these liquidations were for long positions relying on leverage. When prices drop suddenly, these over-leveraged positions get liquidated, driving prices down further in a vicious cycle of selling.
• Breaking critical technical support levels: It wasn't just liquidations; the total market cap of cryptocurrencies broke a major technical support level at around $3.35 trillion. Breaking this level often triggers more algorithmic sell orders and stop-loss orders, fueling the downward momentum.
• Decreased demand after a peak frenzy: In the days leading up to this week, Bitcoin had reached new price peaks. After these significant increases, demand began to weaken. This indicates that some investors were taking profits or that "buyers" felt fatigued after the continuous push to raise prices.
Conclusion: A market that does not spare the weak!
Last week was a strong reminder that Bitcoin is not immune to macroeconomic forces and geopolitical tensions. External factors, along with the internal structure of the derivatives market, can lead to strong and sudden price movements.
Do you think this decline is a golden opportunity to buy at lower prices, or is it just the beginning of a longer corrective phase? What will be your next step in light of this data?
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