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coinpedia 2025-05-19 15:33:04

Crypto Markets are Plunging Hard—Is This the Best Buying Opportunity?

The post Crypto Markets are Plunging Hard—Is This the Best Buying Opportunity? appeared first on Coinpedia Fintech News The crypto markets faced a huge bearish action throughout the past week, while the bullish push during the weekend revived the possibility of a healthy recovery. No sooner had the BTC price erased all the gains incurred during the last trading day than the markets tumbled heavily. Currently, the Bitcoin price has dropped below the pivotal support at $102,800, which has dragged down the levels of the majority of the altcoins. The Ethereum price has slumped below $2400, while the Solana price is trading close to $160. Meanwhile, the XRP price is heading close to the barrier at $2.3, while the Cardano price is approaching the crucial barrier at $0.7. On the other hand, the memecoins have also faced a massive bearish action, with BOOK OK MEME recording over a 10% loss, followed by dogwifhat, Fartcoin, and Mog Coin with over an 8% drop. No tokens have been attracting gains, which suggests the bears could have capitulated the market. Why is the Crypto Market Down? Multiple reasons other than the BTC profit-taking have been contributing to the crypto market plunge, like the drop in the ETF inflows, a security breach at Coinbase and a regulatory crackdown on illicit activities of Haowang Guarantee, one of the largest online black markets. On the other hand, the market volatility has triggered substantial liquidations, as more than $650 million worth of positions were liquidated. One of the major reasons for the downfall of not only the crypto markets but also the stock markets is Moody’s decision to downgrade the US credit rating. Moreover, the agency warned that the country’s fiscal outlook was deteriorating as the national debt had risen to over $36.8 trillion from $21 trillion in 2020, which is believed to rise further. What’s Next? Will Bitcoin Price Go Up? The lowered prices of Bitcoin have again attracted the institutions, as MicroStrategy has again accumulated 7,390 BTC. On the other hand, the XRP and Micro XRP Futures are live on the CME Group, which has a major credibility upgrade with institutional futures. Meanwhile, BlackRock’s BTC ETF, IBIT, has pulled in nearly 2X the inflows of the GOLD ETF in 2025. Hence, the momentum appears to be cooling, but the structure stays bullish as retail is piling in while whales quietly accumulate off-exchange, and sentiment’s heating up without tipping into mania. The BTC MACD flashes near-term caution with a bearish crossover, and open interest has pulled back, signalling reduced leverage and some profit-taking. Hence, one can expect a chop or a reset unless buyers step up fast. Besides, the stablecoin inflows on exchanges are rising, and if the BTC price could rise back above $107K on real volume, the upside trend could accelerate. But for now, risk of consolidation or a shallow dip remains in play.

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