Crypto collapse! Bitcoin and Ethereum are reeling in an uncertain market

Crypto collapse! Bitcoin and Ethereum are reeling in an uncertain market

On May 31, 2025, the cryptocurrency market is showing clear signs of cooling down. Bitcoin price has declined to $103,700, down 1.4% in the last 24 hours. Ethereum also experienced negative developments and fell by 4% to $2,520. XRP price corrected by 3% and is now at $2.13, while Solana has fallen by 5% to $155. Overall, the market ratio was $3.25 trillion, a loss of $180 billion compared to the previous week.

The decline in cryptocurrencies is accompanied by stagnant trade talks between the US and China. US Treasury Secretary Scott Bessent has reported stalled negotiations in recent statements, while former President Donald Trump has spoken negatively about existing agreements with China. Despite the declines in the crypto sector, traditional stock markets are less responsive; the S&P 500 loses 0.5% and the NASDAQ 100 corrects by 1.2%.

Market situation and trading volumes

Trading volumes on the Binance platform have increased remarkably. The 24-hour volume for BTC/USDT exceeded $2.1 billion, up 10% from the previous day. Also, trading volume for ETH/USDT was $1.3 billion, an increase of 8%. This suggests that there is some market activity despite the falling prices.

The Bitcoin Fear & Greed Index shows a neutral score of 50, signaling a slowdown after the previous bull market phase. Nevertheless, there was positive market sentiment at the beginning of the month, fueled by, among other things, optimistic trade talks between the US and China and expectations of stable interest rates at the upcoming Fed meeting.

Institutional demand and new products

Institutional demand also remains a key aspect of market movements. Metaplanet recently acquired 555 BTC worth about $53.5 million, and MicroStrategy plans to apply for $21 billion in Bitcoin purchases. Such moves could potentially provide fresh impetus to the market, especially if Bitcoin continues to head toward $100,000. Technical indicators suggest that a break above this valuable resistance could trigger a new upward move.

Additionally, the recent Ethereum upgrade “Pectra” on May 7 brought positive changes such as increasing the staking limit for validators from 32 to 2,048 ETH as well as improvements to wallet features.

Outlook and risks

Despite the uptick in trading volumes, risks remain. The market's sensitivity to external shocks remains high. Factors such as interest rate policy, new regulatory projects and security incidents could trigger setbacks. The EU's new MiCA regulation, in effect since spring 2025, requires unauthorized stablecoins to exit the market, adding to the importance of USDC in Europe.

The stablecoin market is showing growth, and the total supply was around $226 billion as of April 19, 2025, with Tether (USDT) and USD Coin (USDC) as the dominant players. Demand for crypto purchasing options without full KYC is growing while memecoins like Dogecoin and Shiba Inu continue to contribute to market volatility.

While May 2025 shows some bullish tendencies, the crypto market is forced to overcome a variety of challenges to ensure a sustainable recovery.

For more information on current developments in the crypto market, visit BTC ECHO and Exchange Express.