Why the Cryptocurrency Market is Down Today: Concerns About Trading, Liquidation, and Technical Weakness

The cryptocurrency market experienced a significant decline on May 29, stemming from a combination of several factors such as geopolitical tensions, weak technical signals, and investor anxiety. The correction began during the late trading session in America, shortly after U.S. Treasury Secretary Scott Bessent confirmed that trade negotiations with China were stalled. The America - China tensions cause the risk market to fluctuate. Mr. Bessent's statement about the necessity of direct negotiations between the leaders of the two countries has caused the global fintech market to return to a "risk-off" state (risk-off), and this sentiment quickly spread to the digital asset sector. As a result, a series of major cryptocurrencies plummeted, led by Bitcoin. Bitcoin is falling sharply, while altcoins are plunging even deeper. Bitcoin – the largest digital currency in the world – fell 2.78%, trading around 105,575.53 USD. This decline comes shortly after statements related to the US-China trade tensions, causing investors to flee from high-risk assets. Ethereum also faced selling pressure, falling sharply by 4.36% to 2,612.80 USD. Other top altcoins like Solana and XRP experienced even deeper declines: Solana lost 5.73%, while XRP decreased by 4.66%. BNB, the native token of the Binance exchange, also fell by 2.45%, currently trading at 669.22 USD. The sell-off pressure has become more severe as a series of long positions using high leverage were liquidated when prices fell, contributing to an increase in technical selling pressure. The market index shows that sentiment remains cautiously positive. Although the market is adjusting in the short term, the general sentiment of investors remains at a controlled optimistic level. The Fear and Greed index is currently at 61, reflecting a "Greed" sentiment (Greed). This indicates that investors expect a recovery; however, they are still acting cautiously at this time. In addition, Bitcoin continues to demonstrate superiority over most other altcoins. The Altcoin Season Index is currently at 20/100, indicating that the market is in the "Bitcoin Season" phase – a period where capital primarily flows into Bitcoin rather than smaller market cap coins. Market capitalization falls but trading volume remains high The total market capitalization of the cryptocurrency market has fallen to 3.32 trillion USD, lower than the peak in mid-May. However, the trading volume over the past 24 hours has still reached a high of 146.05 billion USD, demonstrating that investors are still actively participating in the market, even though prices are going down. The CMC100 index shows a broad adjustment. The CoinMarketCap 100 index (CMC100) – tracking the top 100 cryptocurrencies – has fallen by 3.53%, down to 204.05 points, highlighting a comprehensive decline across the entire market. Conclusion: The cryptocurrency market is undergoing a period of sharp correction due to the influence of macro and geopolitical factors. Although investor sentiment is still tilted towards optimism, caution is essential in the current context. With volatility continuing, investors should closely monitor global factors and have appropriate risk management strategies.