Why Is Crypto Up Today – May 16, 2025?
By: crypto news|2025/05/16 18:45:05
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The crypto market has seen another shift today: though the market cap is down, most coins have seen their prices increase in a spot-driven rally. The cryptocurrency market capitalization fell 0.9% over the last 24 hours, now standing at $3.45 trillion. The total crypto trading volume is at $131 billion at the time of writing.TLDR:The market has turned green over the past day, despite the modest drop in the market cap;BTC surpasses the $103,500 level, nearing $104,000, while ETH climbs to $2,600;Anything Over $100,000 for BTC is currently a win;Spot ETFs drive today’s rally, spot Bitcoin ETFs record $115 million net inflows;Analysts see a short-term consolidation phase and a medium-term structural bull trend;Beware of medium-term headwinds.Why is Crypto Up Today? Crypto Winners & LosersWhile all top 10 coins recorded price decreases at this time yesterday, only one is in the red now. Namely XRP fell 2.3% to the price of $2.42.The category’s best performers are Ethereum (ETH) and Tron (TRX), which increased by 2.1% each, trading at $2,602 and $0.2757, respectively. Notably, this is ETH’s highest point in the last day.After reaching a daily high of $104,273, Bitcoin (BTC) retreated back to $103,928, but it is still up 1.9% in a day.Story (IP) is the highest gainer in the top 100 category, having appreciated 12.8% to $4.97. At the same time, Quant (QNT) fell the most: 3.9% to the price of $93.94.The market has seen a substantial increase in investor interest. According to a recent report by River Financial, companies across various industries have added 157,000 BTC, equivalent to $16 billion, to their balance sheets this year alone. Michael Saylor’s Strategy (ex-MicroStrategy) accounts for more than 75% of that.Metaplanet has acquired 1241 BTC for ~$126.7 million at ~$102,119 per bitcoin and has achieved BTC Yield of 170.0% YTD 2025. As of 5/12/2025, we hold 6796 $BTC acquired for ~$608.2 million at ~$89,492 per bitcoin. $MTPLF pic.twitter.com/KXNWl5Hg0d— Simon Gerovich (@gerovich) May 12, 2025One of the latest to announce its Bitcoin accumulation strategy is Chinese consumer company DDC Enterprise. It plans to add 100 BTC to its balance sheet immediately, aiming to accumulate 500 BTC within six months and 5,000 BTC within 36 months.JUST IN: Chinese public company DDC Enterprise to adopt a Strategic #Bitcoin Reserve, plans to buy 5,000 BTC. pic.twitter.com/wZ9278EZTc— Bitcoin Magazine (@BitcoinMagazine) May 15, 2025Ruslan Lienkha, Chief of Markets at FinTech platform YouHodler, commented that the upward momentum in equity markets has moderated after the end of tariff negotiations. Short-term traders began locking in profits, previously triggering short-term corrections.The pullback was a correction within a broader medium-term uptrend. This has now turned upwards. “However, ongoing global economic uncertainty and persistently high interest rates in the US may act as headwinds, potentially capping the upside potential of this trend,” Lienhka says.‘Anything Over $100,000 is a Win’James Toledano, Chief Operating Officer at Unity Wallet, notes that BTC seems to be moving in line with market expectations. It has kept “a tight trading range” near $104,000 over the past week, suggesting a phase of healthy consolidation. Recent dips seem not to be a structural concern but normal market volatility.“Anything over $100,000 is a win as we look for stabilization and price support at this level,” Toledano says.Furthermore, according to the latest Glassnode report, since the $75,000 price low in April, Bitcoin markets are experiencing a rally, with sideways accumulation phases between each move higher.Source: GlassnodeBitcoin’s rally to $104,000 seems to be spot-driven, in combination with strong on-chain accumulation and off-chain flows. The demand is primarily via spot exchange-traded funds (ETFs) and major spot exchanges like Coinbase.Toledano adds that Coinbase’s inclusion in the S&P 500 “affirms that crypto is no longer either peripheral or a financial pariah looked down upon—it is a maturing sector with systemic and growing relevance.” This development is expected to drive additional investor inflows. However, the exchange is reportedly facing an investigation by the SEC over the accuracy of its reported user numbers.Additionally, the US Consumer Price Index (CPI) data from May 13, 2025, suggested cooling of inflation, signaling that the Federal Reserve could announce rate cuts later this year, crypto exchange HTX commented. It warned, however, that a debt ceiling agreement in July or August may “lead to a tightening of system liquidity once again, potentially exerting downward pressure on risk assets.” US CPI just dropped: Inflation cooling off ! CPI y/y: 2.3% (vs 2.4% expected) CPI m/m: 0.2% (vs 0.3% expected) Core CPI m/m: 0.2% (vs 0.3% expected)All numbers came in cooler than forecast.Now let’s see how #Bitcoin #ETH and risk assets react. https://t.co/g2G3y8vNC0— Titan of Crypto (@Washigorira) May 13, 2025The Bitcoin options’ near-term implied volatility decreased from 65% prior to the CPI release to 58%. This shows expectations of short-term price stability. The ETH options market show a longer-dated bullish structure, with demand for $4,000-$5,000 call options expiring in December, “suggesting institutional investors are positioning early for the next potential rally.”Levels & Events to Watch NextWhile the macro trend supports long-term bullishness, short-term charts suggest caution. Though BTC managed to move above $103,400, making a bullish turn, there is still a potential for it to turn back and fall as low as $100,700 or below the psychologically important $100,000 level.Per the Glassnode researchers, a key accumulation zone emerged between $93,000 and $95,000. It will likely act as a strong support level should there be a short-term market pullback. It will be “a demand zone where investors are likely to see value once again.”Source: GlassnodeMoreover, the Fear and Greed Index fell from 71 seen yesterday to 69 today. This suggests increased optimism, confidence, and buying activity. However, it may lead to overconfidence and overvaluation.Meanwhile, US-listed spot Bitcoin ETFs saw $115 million net inflows on Thursday. Yet, it’s a mixed picture. While BlackRock saw $410 million in inflows, ARK 21Shares recorded $132 million in outflows.Per Glassnode, “ETF flows show that institutional interest in Bitcoin remains relatively robust, with inflows being of a similar magnitude to those seen during previous market rallies in 2024.”Notably, the weekly average net inflows peaked at $389 million a day on 25 April. This coincided with the surge in spot-driven buying and supported the rally to $104,000. Inflows have since declined to some $58 million a day.Meanwhile, per HTX, in the short term, “the high percentage of short-term holders in profit and the concentration of leveraged positions imply that any breakout or breakdown of key technical levels could trigger concentrated profit-taking and liquidation cascades, leading to heightened volatility. The overall market structure remains defined by a medium-term structural bull trend combined with a short-term consolidation phase.”Quick FAQWhy did crypto move with stocks today?Both crypto and stock markets are seeing upward movement today, due to institutional interest, policy developments, and investor sentiment. The former seems to be showing more investor enthusiasm. Nonetheless, the S&P 500 is up 0.4% today, the Nasdaq-100 has increased by 0.078%, while the Dow Jones Industrial Average has risen by 0.65%.Is this rally sustainable?Continued inflows into spot Bitcoin ETFs suggest long-term investor confidence, while long-term holders (LTH) still accumulating is also a bullish signal. Nonetheless, the greed is rising, and BTC is nearing its all-time high, where strong resistance awaits it. The rally may face headwinds if greed rises further, ETF inflows slow, and/or macro conditions shift.The post Why Is Crypto Up Today – May 16, 2025? appeared first on Cryptonews.
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