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Key Reasons Why BTC, ETH, XRP, SOL, DOGE Price Retreat
The crypto market has gone through a bumpy road lately, with all the major cryptos like Bitcoin, ETH, SOL, XRP, DOGE, SHIB, and other prices declining over the past few days. Meanwhile, the recent market crash indicates the ongoing bearish sentiment hovering over the market while dampening investors’ confidence.
Although there is a flurry of macroeconomic and other related concerns, let’s explore some of the potential reasons behind crypto prices’ dip today.
Why Is The Crypto Market Falling Today?
The broader crypto market has gone through tumultuous trading so far over the past few weeks, over the soaring concerns of inflation, the Fed’s stance with their policy rates, and other related concerns. So, here we explore the potential reasons why the crypto market is witnessing a downturn momentum today.
Bitcoin ETF Outflows Trigger Crypto Market Dip
The cryptocurrency market witnessed a downturn today, driven by ongoing outflows from the U.S. Spot Bitcoin ETF. According to Farside Investors data, Bitcoin ETFs have experienced outflows for three days this week, contrasting with two days of inflows.
Over the last two days, the U.S. Spot Bitcoin ETFs registered a significant outflow of $96 million, heightening investor apprehensions. However, this comes after a promising start to the week, with a substantial inflow of $217 million into the investment instrument, which has also fueled optimism in the crypto market.
Meanwhile, the predominant factor behind the outflow pressure appears to be the persistent exodus from Grayscale GBTC, with over $146 million exiting in the past two days alone. These consecutive outflows from Bitcoin ETFs and the ongoing Grayscale exodus have contributed to the prevailing negative sentiment in the crypto sector.
Inflation Concerns
Today’s crypto market dip is attributed to heightened inflation concerns following recent economic data. For context, the University of Michigan’s consumer sentiment index plummeted from 77.2 in April to 67.4 in May, marking a six-month low and missing expectations.
In addition, inflation expectations for the year ahead surged to 3.5%, reaching a six-month high, while the five-year outlook rose to 3.1%. Meanwhile, Federal Reserve officials’ cautious remarks further fueled investor anxiety.
As CoinGape Media reported earlier, Fed’s Lorie Logan highlighted significant upward inflation risks, advocating for policy flexibility and ruling out immediate rate cuts. Simultaneously, Fed Governor Bowman emphasized the need for sustained policy stability.
These developments have left investors apprehensive about the economic outlook, prompting a downturn in the crypto market as they seek clarity amid uncertain financial conditions.
Also Read: Dogecoin (DOGE) Price Eyes ‘Golden Cross’, A Mega Rally ahead?
Anticipation of Next Week’s Economic Data
Investors are bracing for next week’s economic data release, causing a pause in the crypto market today. With recent bleak economic indicators impacting sentiments, anticipation looms over the U.S. Producer Price Index (PPI) and Core PPI data set to be unveiled on Tuesday, May 14, alongside Fed Chair Jerome Powell’s address.
Following this, the focus shifts to the U.S. Consumer Price Index (CPI) data and Core CPI data, as well as U.S. retail sales data, scheduled for release on Wednesday, May 15. Notably, these pivotal economic figures hold significant weight for crypto market investors, offering insights into the current economic landscape and inflationary pressures.
Meanwhile, as anticipation builds, market participants are exercising caution, leading to a temporary downturn in the crypto market as they await crucial indicators to navigate future investment strategies.
A Closer Look Into The Market Trends
The recent discussions over the crypto market dip have been further intensified by the latest report of Santiment. In a recent X post, Santiment said that this downward trend coincided with a concerning lack of enthusiasm among traders to capitalize on the dip through the “buy the dip” strategy.
Meanwhile, the report suggests that the prevailing sentiment among traders indicates a lack of confidence, signaling that the cryptocurrency’s price may be nearing a bottom. This hesitancy to buy during the dip reflects a broader sentiment of uncertainty among investors, contributing to the downward pressure on prices across the market.
On the other hand, CoinGlass reported a significant surge in crypto liquidations, with 58,000 traders facing liquidation, totaling $156.53 million in the last 24 hours. Notably, the largest single liquidation occurred on Binance, involving the BTCUSDT pair, with a value of $3.56 million.
Crypto Prices & Performance
The global crypto market fell 3.42% to $2.26 trillion as of writing, indicating the bearish sentiment hovering in the market. At the same time, the Bitcoin price slipped 3.26% and traded at $61,033.64, while the Ethereum price plunged 4.00% to $2,922.99.
Similarly, the Solana price noted a slump of 5.65% to $145.72, while the XRP price plummeted 2.31% to $0.5058. The scenario in the meme coin sector was also bearish amid the broader market retreat. The leading meme coin, Dogecoin price fell 5.15% to $0.1445, while the Shiba Inu price decreased by 3.80% to $0.00002262.
Also Read: PEPE Investors Accumulate 650 Bln Pepe Coin, More Steam Left?
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Following a reserve crisis that hit TrueUSD and Justin Sun’s intervention, First Digital Trust denied claims of insolvency. The Trust, at the center of the fiasco, says it is fully solvent while accusing Sun of sensationalism.
First Digital Trust Refutes Allegations Of Insolvency
First Digital Trust has released a statement debunking allegations of financial impropriety and insolvency. According to the statement, First Digital Trust says it is completely solvent while accusing Justin Sun of falsehood.
The Trust has been at the center of a whirlpool of a liquidity crisis involving TrueUSD (TUSD) with Justin Sun stepping in to stabilize the stablecoin with a capital injection. The Tron founder launched a tirade against the Hong Kong-based trust, accusing it of financial mismanagement including unauthorized trade finance loans.
“The recent allegations by Justin Sun against First Digital Trust are completely false,” read the statement.
The Trust disclosed that its FDUSD stablecoin is solvent and backed by US Treasury Bills. Per the statement, the legal dispute surrounding TUSD has nothing to do with FDUSD, accusing Sun of a smear campaign. First Digital Trust says it has not had the opportunity to defend itself in court, accusing Sun of launching social media attacks.
“This is a typical Justin Sun smear campaign to try to attack a competitor to his business,” added First Digital Trust.
Justin Sun Maintains His Stance
Justin Sun remains firm in his resolve that First Digital Trust is insolvent while urging investors to cut ties with FDUSD. He warns that the Trust founder Vincent Chok will face the full wrath of the justice system.
“First Digital Trust (FDT) is in fact insolvent,” said Sun. “If you have any relationship with it, please cut off contact as soon as possible to protect your assets.”
Following his accusations, FDUSD lost its peg and traded at a low of $0.88, a steep drop before crawling to $0.98. The loss of $130 million from its market capital has rattled investors with critics taking swipes over its de-pegging.
The Tron founder has covered every blade of grass in recent days, buying $75M of the Trump memecoin. Last week, Justin Sun weighed in on TRX’s halving proposal, supporting a proposal to mirror Bitcoin’s pattern.
The stablecoin drama comes as the US is inching toward tighter stablecoin regulation with the GENIUS Act and STABLE Act.
Aliyu Pokima
Aliyu Pokima is a seasoned cryptocurrency and emerging technologies journalist with a knack for covering needle-moving stories in the space. Aliyu delivers breaking news stories, regulatory updates, and insightful analysis with depth and precision. When he’s not poring over charts or following leads, Aliyu enjoys playing the bass guitar, lifting weights and running marathons.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Cardano price has been facing significant price fluctuations recently, with its value hovering around $0.68 as of April 2025. Traders and investors are watching closely to see whether ADA can bounce back to $0.70 or face further declines towards $0.60.
Crypto Market Volatility Drives ADA’s Recent Price Action
Over the past few days, Cardano’s price has seen moderate fluctuations. After dipping to a low of $0.663, ADA price briefly rebounded to reach highs of $0.69. Despite these ups and downs, the cryptocurrency closed on the green side, which points to at least some of the buying pressure.
The price action states that a general bullish trend was seen where most of the cryptocurrencies moved up, then down.
Overall market has remained very unstable and traders have been seen transferring their positions by buying during any falling. Consequently, ADA’s price was able to remain somewhat stable and maintain its position above some important support levels. The 24-hour chart indicates that Cardano’s price is currently sitting just above the $0.68 mark, up by 0.90%. Nevertheless, it is down by about 7.87% in the past week, which hints at poor performance in reversing the downtrend.
ADA Price Support and Resistance Levels to Watch
Traders are paying close attention to ADA’s key support and resistance levels. The nearest support level is $0.63, which, if broken, will imply further decline in the value, or a possible reversal of the trend if the price retests this level.
If Cardano goes below this level, the subsequent level of support may be between $0.60 and $0.61. Any move below $0.63 looks reasonably bearish, and opens the possibility of ADA testing these particular lows.
On the other hand, Cardano must clear its resistance levels to regain bullish momentum. The daily moving averages at $0.73 (200-day moving average) and $0.75 (50-day moving average) are important barriers to watch. As of now, the RSI stands at 46.27, just below the neutral level of 50. An RSI below 50 means that ADA is not yet in a bullish trend, although it could be in the reclaiming process if only the buying pressure rises. At the moment, the MACD Is show a bearish outlook as the MACD line is below the signal line.
However, there are signs of weakening bearish momentum, as the histogram shows increasing green bars. This suggests that while the market is still in a bearish phase, ADA may soon experience a bullish reversal if the MACD crosses into positive territory. Moreover, ADA’s price action also forms a Falling Wedge pattern, which is typically considered a bullish reversal pattern despite the death cross formed ealier today threatening a 25% ADA price dip.
Analyst Outlook for Cardano’s Price Movement
Crypto analysts are mixed in their outlook for Cardano in the short term. Some experts predict that ADA could continue to trade within its established range between $0.63 and $0.75.
However, a breakout above the $0.75 resistance could set the stage for a stronger upward move, with some even setting a target of $1 for the next few weeks. Moreover, according to a TradingView analysis shared, Cardano price has been following an established ascending channel pattern over the years. This pattern has historically led to significant price surges when ADA moved between its upper and lower trendlines. In the past, a similar channel saw ADA rise from $0.20 to over $2.70 in 2021.
The TradingView chart suggests that if ADA continues to follow this pattern, it could see significant upside potential in the long term. Analysts believe ADA might push towards $50.48 by the end of 2025, as it follows this channel’s upward trajectory. Such a move would require continued market optimism and strong demand for ADA.
On the flip side, analysts like Ali Martinez warn that Cardano is at a critical juncture. If ADA fails to reclaim the $0.70 to $0.80 support zone, it could see a deeper correction. Some experts suggest that ADA might test the lower $0.30s, though this scenario would require a more severe breakdown from current levels.
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Elon Musk’s time at the Department of Government Efficiency (DOGE) is coming to an end following White House chatter. While DOGE has had a significant impact since its launch, Musk’s departure will have unintended consequences for Dogecoin price.
Is Elon Musk Leaving DOGE?
A Politico report suggest that the curtain could be falling on Elon Musk’s time at DOGE after nearly four months. Musk has been leading operations at the department since its formation, stifling fraud and reducing government inefficiency.
However, the report notes that the Tesla CEO will be leaving the agency to focus on his business empire. Per the report, Musk’s departure is linked to growing criticisms over his handling of DOGE operations since taking over the reins.
Elon Musk’s supporters argue that a transition is in order with the blueprint for DOGE already established. Furthermore, whispers of a departure are coinciding with the end of a 130-day exemption for Musk to operate as a special government employee, allowing him to sidestep a maze of conflict of interest rules.
Despite, clear signals for his Elon Musk’s departure, President Trump vows to keep the billionaire at DOGE for as long as possible. While Musk will not call the shots at DOGE in the future, pundits say Trump will offer Musk with an advisory role.
Will Elon Musk’s Exit Affect Dogecoin Price?
The exit of Elon Musk from DOGE will have far-reaching effects on Dogecoin’s price. His appointment to DOGE triggered a rally for the memecoin and pundits theorize that his exit may trigger negative sentiments.
Musk’s influence on the memecoin is far-reaching and previous actions have triggered price swings. After Musk teased a Ghibli-themed DOGE, Dogecoin price showed glimpses of a strong rally.
His comments that there are no DOGE adoption plans by the US sent dampened enthusiasm for a potential rally. At the moment, Dogecoin is trading at $0.1742, holding onto its April 1 gains. However, weekly charts indicate a 12% draw down that may worsen if Elon Musk leaves DOGE.
Aliyu Pokima
Aliyu Pokima is a seasoned cryptocurrency and emerging technologies journalist with a knack for covering needle-moving stories in the space. Aliyu delivers breaking news stories, regulatory updates, and insightful analysis with depth and precision. When he’s not poring over charts or following leads, Aliyu enjoys playing the bass guitar, lifting weights and running marathons.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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