The cryptocurrency market saw a sharp decline at the end of May 2025, with Bitcoin's value dropping below $106,000, leading to a total market capitalization decline of 2.12% to reach $3.34 trillion.
Main Reasons for Market Collapse:
1. Geopolitical and Economic Pressures: Global tensions and economic uncertainty have increased, prompting investors to avoid high-risk assets such as cryptocurrencies.
2. Massive Liquidations: Approximately $335 million in trading positions were liquidated in 24 hours, including currencies such as BTC, ETH, and SOL, increasing selling pressure.
3. Profit Taking by Large Investors: Bitcoin exchange-traded funds saw outflows of $346.8 million on May 29, indicating that large investors are taking profits.
4. Negative Technical Effects: Technical indicators such as a negative MACD crossover and price decline below moving averages have heightened negative market expectations.
5. Regulatory Uncertainty: Some promised regulatory policies, such as the 'Strategic Bitcoin Reserve' plan, have been delayed, affecting investor confidence.
Future Outlook:
Despite the current downturn, there remains optimism among large investors regarding Bitcoin's long-term value. However, the market may remain volatile in the short term due to the mentioned factors.
For investors, caution is advised, and closely monitoring economic and regulatory developments is essential, with a focus on risk management strategies.