Crypto Market Faces New Challenges as Bitcoin Slips Below $105,000
On Saturday, May 17, the crypto market saw a downturn. Most altcoins lost some of their recent gains.Bitcoin, the leading cryptocurrency, fell from $105,000 to $103,000.This decline affected other coins like Pi Network, Bonk, Floki, and Pudgy Penguins, which all dropped by more than 10%.
Bitcoin’s price movement frequently enough influences other altcoins. When Bitcoin rises,altcoins usually follow. Conversely,when it falls,they often drop too. Recently, bitcoin couldn’t break through the $105,000 barrier. This failure led to a ripple effect, causing other coins to lose value.Pi Network, Bonk, Floki, and Pudgy Penguins where among the top losers, each dropping by over 10%.
bitcoin’s performance is a key indicator for the crypto market. When Bitcoin climbs, altcoins often follow. Though, when it retreats, altcoins usually fall too. As a notable example,when Bitcoin recently broke the $90,000 resistance and reached $105,900,most altcoins surged by double digits. Now, as Bitcoin struggles to cross $105,000, altcoins are feeling the pressure.
Profit-taking by investors who benefited from the recent rally is another reason for the decline. Bonk, which was up nearly 200% from its April low, now faces a 26% drop from its monthly high. Floki and Pudgy Penguins also saw significant gains before the downturn.
Global market risks are also affecting crypto prices. Despite a US-China truce, a 30% tariff remains. The US also kept a 10% tariff on UK goods, and talks with Japan are stalled. These factors increase the risk of a US recession, with Polymarket traders estimating a 38% chance. Moody’s downgraded the US credit rating due to high public debt and poor fiscal policies.
Will the crypto market recover? Watch Bitcoin. on the daily chart, it may be forming a bullish pennant and cup-and-handle pattern. If it breaks above the 50-day moving average, it could hit its all-time high of $109,300, perhaps boosting altcoins.
