Bitcoin & Crypto Markets Slump: Inflation Data and Profit-Taking Trigger Selloff

Bitcoin and Crypto Markets Face Pressure Amid Inflation Data and Profit-Taking

On May 15, 2025, Bitcoin prices edged lower, reacting to weaker-than-expected U.S. wholesale inflation data and a broader risk-off mood in financial markets. According to Fingerlakes1.com, Bitcoin briefly slipped below $102,000 USD, continuing a recent pattern of range-bound trading that has frustrated bullish investors. At 9:59 a.m. ET, Bitcoin was down about 1.39% on the day, trading around $102,119 USD. The pullback followed the release of the April Producer Price Index (PPI), which rose just 0.5% year-over-year, undershooting economist forecasts of a 0.6% increase. Core PPI, which strips out volatile food and energy prices, also came in softer than expected at 0.4%.

Bitcoin is often viewed as a hedge against inflation, but softer economic data suggests the Federal Reserve may delay interest rate cuts, removing a key bullish catalyst for crypto markets. Lower-than-expected PPI signals weakening demand and pricing power for U.S. businesses, which may impact risk appetite across asset classes, including cryptocurrencies. Analysts at Barron’s noted, “The weaker PPI data adds to the uncertainty surrounding the Fed’s rate path. For Bitcoin, this means the bullish narrative of imminent rate cuts is getting pushed further out, dampening near-term momentum.”

Asset	Price (May 15, 2025)	Daily Change
Bitcoin (BTC)	$102,119	-1.39%
XRP	$2.44	-2.3%
Ethereum (ETH)	Not specified	-1.8%

Bitcoin remains trapped in a narrow trading range with $102,000 as key support.
Retail interest in crypto remains muted despite institutional activity.
Altcoins, including XRP and Ethereum, continue to mirror Bitcoin’s cautious tone.

Summary: Bitcoin and major altcoins are under pressure due to soft U.S. inflation data and reduced hopes for near-term Fed rate cuts. The market remains rangebound, with low retail participation and cautious sentiment prevailing. (Source: Fingerlakes1.com)

Bitcoin’s Comeback and ETF Inflows Highlight Market Resilience

Despite recent volatility, Bitcoin has staged a remarkable comeback, according to dlnews.com. After trading around $80,000 earlier in the year, Bitcoin is now up 10% since the beginning of May and trading at $103,500. JPMorgan highlighted that inflows to exchange-traded products, including Bitcoin ETFs issued by BlackRock and Fidelity, flipped positive to post their best month since January. In April, Bitcoin ETFs saw total inflows of $3 billion, with BlackRock’s IBIT accounting for 84% of the total. The overall Bitcoin ETF market is dominated by BlackRock’s IBIT, which has a 52% market share. Since their 2024 launch, Bitcoin ETFs have drawn in a combined $96 billion, compared to $5 billion for Ethereum ETFs.

Bitcoin’s market capitalization ended April at $1.87 trillion, up 14% month-over-month. Much of these gains were “largely concentrated in the final week of the month,” according to JPMorgan. When compared to gold, Bitcoin is up 15% over the past year, while gold is up 5%. Publicly traded crypto firms saw their market cap contract 34% from a post-election all-time high of nearly $120 billion in November 2024 to $76 billion at the end of April, but April brought a 19% month-over-month increase. Galaxy was the biggest gainer in market cap, growing 45% through the month, and Coinbase’s stock rose 16% on news of its inclusion in the S&P 500, with its market cap up 18% month-over-month.

Metric	Value
Bitcoin Price (May 2025)	$103,500
Bitcoin ETF Inflows (April)	$3 billion
BlackRock IBIT Market Share	52%
Total Bitcoin ETF AUM (since 2024)	$96 billion
Bitcoin Market Cap (April end)	$1.87 trillion
Crypto Public Firms Market Cap (April end)	$76 billion

Summary: Bitcoin’s recovery is supported by strong ETF inflows and a rebound in market capitalization, outpacing gold and showing resilience despite earlier setbacks. (Source: dlnews.com)

Altcoins Mirror Bitcoin’s Rangebound Performance

According to Business Standard, the crypto markets remain rangebound as Bitcoin retreats below $104,000. Among other altcoins, Cardano (ADA) was down 4.18%, Solana (SOL) declined 4.08%, Ripple (XRP) fell 2.18%, and Binance Coin (BNB) dropped 1.7%. The market is closely watching U.S. PPI data for further direction. The report also notes that Bitcoin has previously surpassed $100,000 amid optimism over a US-UK trade deal and that the Fed’s steady hand has driven Bitcoin toward $100,000, with ETH and other altcoins surging in tandem.

Cardano (ADA): -4.18%
Solana (SOL): -4.08%
Ripple (XRP): -2.18%
Binance Coin (BNB): -1.7%

Summary: Altcoins are experiencing declines in line with Bitcoin’s retreat, with the market awaiting further macroeconomic signals. (Source: Business Standard)

Ethereum’s Price Surge and Underlying Drivers

Ethereum has surged nearly 100% since its April lows, gaining 65% in the last 30 days to reach $2,750, as reported by The Block. Bernstein analysts attribute this rally to three main factors: a boom in stablecoin and tokenization, Layer 2 institutionalization, and an ETH short unwind. Ethereum holds 51% of the total stablecoin supply and is emerging as the key platform for the growth of tokenized assets. The real-world asset tokenization market is now valued at over $22 billion, with Ethereum dominating deployment. Layer 2 networks like Base earned around $84 million last year, and Robinhood’s acquisition of WonderFi signals further institutional adoption. The unwinding of ETH shorts by hedge funds has also contributed to the recent price surge.

Ethereum price up nearly 100% since April lows
65% gain in the last 30 days, reaching $2,750
Ethereum holds 51% of total stablecoin supply
Real-world asset tokenization market: $22 billion
Base Layer 2 revenue: $84 million (last year)

Summary: Ethereum’s rally is driven by growth in stablecoins, tokenization, Layer 2 adoption, and a shift in hedge fund positioning, positioning ETH as a leading platform for institutional smart contract adoption. (Source: The Block)

Ethereum Faces Technical Risks Despite Recent Gains

Despite its recent rally, Ethereum faces significant downside risks, according to FXEmpire. The so-called realized price metric indicates a potential decline toward $1,200 in a worst-case scenario, which would represent a 50% drop from current levels. The average cost basis for ETH holders varies by wallet size, with the largest holders (over 100,000 ETH) having an average cost basis of $1,222. If ETH fails to reclaim key technical support levels, further declines are possible. Conversely, retaking the 50-period EMA and the triangle’s lower trendline as support could invalidate the bearish setup and lead to upside moves toward $3,800.

Wallet Size	Average Cost Basis
100–1,000 ETH	$2,225
1,000–10,000 ETH	$2,196
10,000–100,000 ETH	$1,994
Over 100,000 ETH	$1,222

ETH downside risk: $1,222 (worst-case scenario, -50%)
Upside target if support reclaimed: $3,800

Summary: Ethereum’s technical outlook is mixed, with significant downside risk if key support levels fail, but potential for further gains if bullish momentum is regained. (Source: FXEmpire)

Ethereum’s Security Initiative and Tokenization Boom

The Ethereum Foundation has announced the “One Trillion Security” initiative to make the network resilient enough to safely support trillions of dollars in assets, as reported by Crypto News. This move comes as tokenized real-world assets (RWAs) gain traction, with Ethereum already dominating the sector by holding over $6.9 billion in RWAs, representing nearly 89% when including layer-2 networks. The Foundation’s security roadmap will focus on identifying weak points, funding audits and bug bounties, and improving developer tools. A report by Boston Consulting Group estimates the tokenized asset market could reach $16 trillion by 2030, about 10% of global GDP.

Ethereum RWAs: $6.9 billion (nearly 89% market share with L2s)
Tokenized asset market forecast (2030): $16 trillion

Summary: Ethereum is strengthening its security to support the rapid growth of tokenized assets, aiming to become the infrastructure layer for global tokenized finance. (Source: Crypto News)

Profit-Taking and Market Sentiment

According to Decrypt, both Bitcoin and Ethereum have seen wavering prices as investors take profits following the recent rally. On May 15, 2025, Bitcoin was trading at $103,696, while Ethereum stood at $2,557.51. XRP was at $2.48, and Binance Coin (BNB) at $656.52. The broader market is experiencing a period of consolidation as traders reassess their positions after significant gains in previous weeks.

Asset	Price
Bitcoin (BTC)	$103,696
Ethereum (ETH)	$2,557.51
XRP	$2.48
BNB	$656.52

Summary: The crypto market is in a consolidation phase as investors lock in profits, with major assets holding above key psychological levels. (Source: Decrypt)

Satoshi Nakamoto Surpasses Bill Gates in Wealth Amid Crypto Rally

As reported by The Economic Times, the recent crypto price rally has propelled the net worth of Bitcoin’s creator, Satoshi Nakamoto, above that of Microsoft founder Bill Gates. This development underscores the immense value generated in the cryptocurrency sector during the latest bull run. The article highlights the ongoing mystery surrounding Nakamoto’s identity and the growing influence of crypto wealth in global rankings.

Satoshi Nakamoto’s net worth now exceeds Bill Gates’ due to Bitcoin’s price rally.
The identity of Satoshi Nakamoto remains unknown.

Summary: The surge in Bitcoin’s price has elevated its creator’s wealth above that of major tech moguls, reflecting the transformative impact of cryptocurrencies on global wealth distribution. (Source: The Economic Times)

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