Bitcoin and Crypto Markets Rocked by Volatility Amid Global Policy Shifts

Bitcoin and Crypto Market Under Pressure Amid Macroeconomic and Policy Uncertainty

On May 30, Bitcoin’s price briefly slipped below the $105,000 mark before staging a slight recovery, according to data from CoinMarketCap. At the time of reporting, Bitcoin was trading at $105,795.12, representing a 1.90% decline from the previous day and a 3.8% drop from its recent all-time high of $110,000. The market capitalization of Bitcoin also fell by 1.92% to $2.1 trillion, while trading volume surged by 16.28% to $58.84 billion during the sell-off. Ethereum, meanwhile, was priced at $2,621.35, down 3.94% from the previous day, with its market cap falling 3.9% to $316.46 billion. The broader crypto market saw a 2.43% drop in market cap to $3.35 trillion and a rise in 24-hour volume to $184.7 billion, with $725 million in liquidations reported. Experts cited passive bulls and ongoing macroeconomic uncertainty, including stalled US-China trade talks and a US court blocking tariffs, as key factors behind the volatility. Institutional demand, however, remains robust, with a record $6.22 billion inflow into the iShares Bitcoin Trust ETF in May and $432 million flowing into spot Bitcoin ETFs. (Source: Mint)

Asset	Price	24h Change	Market Cap
Bitcoin	$105,795.12	-1.90%	$2.1 trillion
Ethereum	$2,621.35	-3.94%	$316.46 billion

Over $345 million liquidated in a few hours during the latest price plunge.
Top gainers: DeXe (+14%), SPX6900 (+3%).
Top losers: Uniswap (-14%), Optimism (-13.33%), Arbitrum & Pudgy Penguins (-13% each), Pepe & Pyth Network (-11% each).

Summary: The crypto market is experiencing heightened volatility due to macroeconomic and geopolitical uncertainties, but institutional inflows into Bitcoin ETFs signal continued confidence. (Source: Mint)

Altcoins Underperform as Bitcoin Dominance Rises

Leading altcoins such as XRP, Solana, and Dogecoin have underperformed Bitcoin amid a broader market contraction of nearly 5% in the last 24 hours, according to CoinGecko. Solana and XRP fell by 5.1% and 4.5% respectively, while Bitcoin dropped only 1.6% to $105,370. Dogecoin and Sui experienced even steeper declines, falling nearly 8% and 3.3% respectively. Chainlink and Avalanche also dropped at least 5%. Bitcoin’s dominance has increased to 64.14%, reaching a four-year high. Analysts from BRN are de-risking in the near term, maintaining an overweight position in Bitcoin but reducing exposure to Solana. The market’s slide is attributed to confirmed GDP contraction and cooling ETF activity, with expectations of further short-term weakness. (Source: Decrypt)

Asset	Price	24h Change
Bitcoin	$105,370	-1.6%
Solana	$160.43	-5.1%
XRP	$2.20	-4.5%
Dogecoin	$0.200302	-8%

“Bitcoin’s dominance rose again, reinforcing its resilience during market downturns. However, we expect further short-term weakness, especially with limited ETF activity over the weekend.” — Valentin Fournier, BRN Lead Research Analyst

Summary: Altcoins are underperforming Bitcoin, which is showing resilience and increasing dominance during the current market downturn. (Source: Decrypt)

China’s Crypto Ban and US Policy Moves Add to Market Volatility

The cryptocurrency market experienced a $61 billion drop in total market capitalization, partly due to new restrictions imposed by China on private cryptocurrency holdings. The Chinese government has banned not only trading and mining but also individual ownership of digital assets like Bitcoin. This move has led to panic selling and a decrease in investor optimism. The ban is seen as a way for Beijing to promote the state-backed digital yuan and tighten control over financial flows. Meanwhile, US economic strategies, including tax cuts and lower tariffs, could incentivize speculative trading in crypto and AI, potentially inflating a market bubble. US Vice President JD Vance has advocated for Bitcoin’s strategic use against China, and President Trump’s executive order in March created a strategic bitcoin reserve with government-owned tokens. (Source: Hindustan Times)

China’s ban covers trading, mining, and private ownership of cryptocurrencies.
US policy shifts could trigger renewed speculative activity in crypto markets.
US government has established a strategic bitcoin reserve.

Summary: China’s comprehensive ban on crypto ownership and US policy maneuvers are major contributors to current market volatility and investor uncertainty. (Source: Hindustan Times)

US Inflation Concerns and Tariff Uncertainty Impact Bitcoin

Bitcoin dipped by around 1% following the release of Federal Reserve minutes highlighting persistent US inflation and potential economic slowdown. Bitcoin hovered just below $108,000 after recently reaching an all-time high above $111,000. The broader crypto market fell by more than 2% to around $3.54 trillion. Fed officials warned of “difficult tradeoffs” ahead as inflation remains high and unemployment rises. The S&P 500, Dow Jones, and Nasdaq all declined by about 0.5-0.6%. However, US stock futures rose after a trade court struck down most of President Trump’s tariffs, though an appeals court later temporarily reinstated them. At the Bitcoin Conference in Las Vegas, Vice President JD Vance emphasized the strategic importance of Bitcoin for the US, especially in contrast to China’s ban. (Source: Yahoo)

Bitcoin price: just below $108,000, down 1%.
Crypto market cap: $3.54 trillion, down over 2%.
Fed minutes highlight inflation and unemployment concerns.
US stock indices down 0.5-0.6%.

Summary: US inflation risks and ongoing tariff policy uncertainty are weighing on Bitcoin and the broader crypto market, with institutional and political factors also playing a role. (Source: Yahoo)

Technical Analysis: Bitcoin, Ethereum, and XRP at Critical Levels

Bitcoin is trading around $105,424, consolidating just under $112,500 after a strong uptrend. A breakout above this resistance could push the price toward $115,000–$118,000, while failure may lead to a pullback to $105,000. Ethereum is trading at $2,633, consolidating under $2,650. A breakout above $2,800 could target $3,200, while a breakdown below $2,450 might test $2,200. XRP is in a tight range between $2.20 and $2.40, with a breakout above $2.40 potentially leading to $2.60, and a drop below $2.25 possibly resulting in a decline to $2.00 or $1.80. The market remains cautiously bullish, but the next few daily closes are critical for direction. (Source: Investing Haven)

Asset	Current Price	Key Resistance	Key Support
Bitcoin	$105,424	$112,500	$105,000
Ethereum	$2,633	$2,800	$2,450
XRP	$2.20–$2.40	$2.40	$2.25

Summary: Bitcoin, Ethereum, and XRP are at pivotal technical levels, with potential for significant moves depending on upcoming price action. (Source: Investing Haven)

Ethereum Upgrades Fail to Boost Network Activity

Despite recent upgrades, including the Dencun and Pectra updates, Ethereum has not seen a significant increase in network activity, according to JPMorgan. Neither the number of daily transactions nor active addresses has materially increased. However, total value locked (TVL) on Ethereum did rise between the Dencun and Pectra upgrades, possibly due to increased lending and borrowing on decentralized exchanges. The upgrades have made Ethereum more appealing to institutions, but have not meaningfully boosted activity. Average and total fees have fallen, partly due to a shift toward layer 2 chains. Ether’s circulating supply increased after Dencun, raising concerns about it becoming an inflationary asset amid subdued transaction activity. (Source: CoinDesk)

No significant increase in daily transactions or active addresses post-upgrades.
TVL increased, but less so in dollar terms.
Average and total fees have fallen.
Institutional participation played a large role in the recent rally.

Summary: Ethereum’s recent upgrades have not led to a meaningful boost in network activity, though institutional interest remains strong. (Source: CoinDesk)

Ethereum ETF Investors Face Losses, But Inflows Continue

Most investors in BlackRock and Fidelity’s spot Ether ETFs are facing significant unrealized losses, with an average loss of approximately -21%, according to Glassnode. Ether is currently trading at $2,601, while BlackRock’s ETF has a cost basis of $3,300 and Fidelity’s is $3,500. Net outflows accelerated when Ether’s spot price dropped below the average ETF investor cost-basis. Ether hit its yearly low of $1,472 on April 9, the same day Trump’s global tariffs came into effect. Despite this, Ether has climbed 44.25% over the past month, and spot Ether ETFs have recorded nine consecutive days of inflows totaling $435.6 million since May 16. Since their US launch in July 2024, spot Ether ETFs have seen $2.94 billion in total inflows. (Source: Cointelegraph)

ETF	Cost Basis	Current ETH Price	Average Unrealized Loss
BlackRock	$3,300	$2,601	-21%
Fidelity	$3,500	$2,601	-21%

Spot Ether ETFs have recorded $2.94 billion in total inflows since July 2024.
Recent inflows: $435.6 million over nine consecutive days since May 16.

Summary: Despite substantial unrealized losses, inflows into spot Ether ETFs continue, indicating ongoing investor interest. (Source: Cointelegraph)

Tariff Policy and ETF Flows Drive Short-Term Crypto Volatility

Bitcoin fell nearly 3% after a US appeals court temporarily reinstated Trump’s tariffs, reversing a trade court decision. US spot Bitcoin ETFs ended a 10-day streak of inflows, with $347 million in net outflows—the worst since March 11. Fidelity’s FBTC saw the largest outflow at $166.3 million, followed by GBTC ($107.5 million) and ARKB ($89.2 million). Only BlackRock’s IBIT posted an inflow, adding $125 million and extending its streak to 34 consecutive trading days. Analysts say the sell-off reflects institutional repricing rather than panic, as investors adjust to policy risk and macroeconomic uncertainty. (Source: Decrypt)

Bitcoin ETF net outflows: $347 million on Thursday.
Fidelity FBTC: -$166.3 million; GBTC: -$107.5 million; ARKB: -$89.2 million.
BlackRock IBIT: +$125 million, 34-day inflow streak.

Summary: Tariff policy uncertainty and shifting ETF flows are driving short-term volatility in the crypto market, with institutional investors repricing risk. (Source: Decrypt)

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