The crypto market started the week on a high, with Bitcoin climbing above $102,000 during the Asian session following news of a 90-day tariff pause between the U.S. and China. However, the bullish momentum didn’t last.
As the New York session opened, Bitcoin sharply pulled back, hitting an intraday low of $100,700 and wiping out most of its early gains. Traders turned cautious ahead of key macro events, particularly the U.S. Consumer Price Index (CPI) data set to be released Tuesday.
The sudden drop triggered over $500 million in long liquidations across the crypto market. Bitcoin futures alone saw nearly $200 million wiped out, while Ether followed with $170 million, according to Coinglass.
Analyst Ali Martinez highlighted a major liquidation risk zone, noting that if Bitcoin fell to $102,700, it could trigger up to $1.45 billion in forced liquidations. He also warned that Bitcoin’s chart structure is beginning to resemble its 2021-22 cycle, a breakout followed by a steep decline, raising concerns of a repeat crash.
The dip wasn’t limited to Bitcoin. Dogecoin (DOGE) and Cardano (ADA) both fell around 7%, while Solana (SOL), XRP, and BNB lost 5%–6%. This sharp reversal comes just days after Ethereum rallied 40%, and Bitcoin briefly broke $104,000 amid massive short liquidations.
The cooling risk appetite appears linked to the U.S.-China tariff rollback. While the agreement helped stock markets, it tempered the aggressive speculative trading that had driven crypto’s recent rally. Futures open interest fell by $1.2 billion across major exchanges, showing that traders rapidly exited leveraged positions.
Market watchers now turn to June’s Federal Reserve meeting. BTSE COO Jeff Mei says the Fed’s tone will be key, a dovish shift could stimulate economic activity and potentially give crypto another lift. But until then, investors remain cautious, bracing for more volatility.
In short, optimism has quickly turned into caution, and Bitcoin’s latest dip is a fresh reminder of how fragile rallies can be in today’s macro-driven crypto environment.
Crypto markets dipped sharply after early gains, with $500M in liquidations as traders await U.S. CPI data and Fed signals.
Crypto is crashing due to liquidations and macro fears; recovery depends on CPI data, Fed tone, and market sentiment.
The U.S. Bureau of Labor Statistics will release the April 2025 Consumer Price Index at 8:30 AM Eastern Time on Tuesday, May 13, 2025 .
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