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Key takeaways:
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Bitcoin worth fell 1.4% to $102,460 amid US financial issues, with day by day buying and selling quantity up 94%, indicating the return of sellers.
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Moody’s US credit score downgrade to Aa1 and a class-action lawsuit in opposition to Technique add to BTC’s headwinds.
Bitcoin’s (BTC) worth has dropped by over 1.4% over the past 24 hours to $102,460 as issues over the well being of the US financial system bitter investor sentiment. Its day by day buying and selling quantity has jumped by 94% to $66.6 billion, suggesting that the sell-side exercise is intensifying.
Macroeconomic uncertainty drives Bitcoin worth down
Moody’s downgrade of the US credit standing from Aaa to Aa1 on Could 16, citing rising debt and deficits. This has heightened macroeconomic uncertainty, contributing to a decline in Bitcoin’s worth on Could 19.
This downgrade and fears of inflation spurred by potential tariff policies underneath President Donald Trump have rattled monetary markets, rising Treasury yields and triggering risk-off sentiment.
“The 30Y Observe Yield is above 5.00% and the 10Y Observe Yield is up one other +11 bps,” said capital markets commentator The Kobeissi Letter in a Could 19 publish on X, including:
“If the Trump Administration doesn’t intervene right here, 8% mortgages are coming.”
Larger yields enhance borrowing prices, hurting companies and customers, particularly amid recession fears and financial issues.
Including to the sell-side stress is the information {that a} class motion lawsuit has been filed against Strategy, the most important company Bitcoin holder.
According to a Could 19 submitting with the US Securities and Change Fee (SEC), the corporate faces a class-action lawsuit that accuses Technique officers of failure to precisely symbolize the character of Bitcoin investments.
🚨 JUST IN: MicroStrategy hit with class motion lawsuit over alleged deceptive statements tied to its Bitcoin technique and $5.9B unrealized Q1 loss. pic.twitter.com/TdJJfUZTRe
— Cointelegraph (@Cointelegraph) May 19, 2025
Technique, holding 576,230 BTC price roughly $59.9 billion at present charges, is a serious participant within the crypto house.
The lawsuit introduces uncertainty in regards to the firm’s monetary stability and casts doubts over its aggressive Bitcoin accumulation technique.
Over $87 million in lengthy BTC positions liquidated
BTC’s drop on Could 19 is accompanied by large liquidations within the derivatives market, signaling robust bearish stress.
Over $87 million price of lengthy Bitcoin positions have been liquidated over the past 24 hours alone, in comparison with $15 million in brief liquidations. Greater than $43 million lengthy BTC positions had been liquidated over the past 12 hours alone, in opposition to simply $2.55 million in brief positions.
Bullish merchants are compelled to shut their positions when lengthy positions are liquidated. Greater than $674 million in leveraged positions had been liquidated throughout crypto belongings up to now 24 hours.
The size of those liquidations mirrors the interval between April 10, when a complete of $65 million in lengthy BTC positions had been worn out, accompanied by a 6.5% drop in worth on the identical day.
In the meantime, Bitcoin’s open interest (OI) has additionally elevated sharply over the past 14 days, up 12% from $70.01 billion on Could 19 to $62.56 billion on Could 5. The OI is now simply 2.3% away from the $71.8 billion all-time excessive recorded on Dec. 19, 2024.
Bitcoin’s bearish divergence
Bitcoin’s drop immediately precedes a interval of rising bearish divergence between its worth and the relative strength index (RSI).
The day by day chart under reveals that the BTC/USD pair rose between Could 9 and Could 19, forming increased highs. However, in the identical interval, its day by day RSI descended from 76 to 63, forming decrease highs, as proven within the day by day chart under.
A divergence between rising costs and a falling RSI normally signifies weak point within the prevailing uptrend, usually prompting merchants to take revenue.
The chart above additionally reveals an space of stiff resistance on the upside, stifling BTC’s efforts to rise increased. These are areas outlined by the $104,600 to $109,000 provider congestion zone. Bulls are required to push the value above the all-time high of $109,000 to proceed the uptrend.
“Larger Bitcoin correction has began?” said widespread crypto analyst AlphaBTC in his newest Bitcoin evaluation, including that the value is more likely to drop to $100,000 this week in response to the US credit standing being downgraded.
“Almost definitely it is going to be a fast correction in markets, so we watch how $BTC reacts and if it may well get again above $103K, or roll over and head to the low $90Ks first?”
This text doesn’t comprise funding recommendation or suggestions. Each funding and buying and selling transfer includes threat, and readers ought to conduct their very own analysis when making a choice.