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  • 30 May 25

Crypto Market Pauses After Record Surge. What Happened and What’s Next

Amid political developments in the United States, the cryptocurrency market has dramatically shifted its behavior.

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Amid political developments in the United States, the cryptocurrency market has dramatically shifted its behavior. After Bitcoin reached a new all-time high of $112,000 on May 22, 2025, the price began to correct.

According to experts, the reason was a statement by U.S. President Donald Trump announcing a 50% tariff on goods from the European Union. This alarmed traders, who still remember the consequences of previous trade wars. Two days later, the White House postponed the implementation of the tariffs to July 9.

Court Blocks Tariffs

On May 28, a U.S. federal court ruled that Trump’s actions exceeded his authority. The judge stated that the “relief tariffs” violated the Constitution by bypassing Congress. The White House appealed the decision, citing the president’s emergency powers, but the court ruling has already sparked new debates on the separation of powers. The tariffs affected over 60 countries, and businesses warned of rising costs.

Social Media Reacts Faster Than the Market

According to Santiment, every spike in mentions of “tariffs” and “trade wars” on social media was accompanied by sharp fluctuations in Bitcoin’s price. A similar reaction was recorded in early April when markets also dropped due to threats of new tariffs. In such cases, crowd emotions turn out to be one of the most reliable indicators: rising greed aligns with price peaks, while fear coincides with upward reversals.

At the peak on May 22, optimism hit its highest level. Users widely anticipated a rise to $115,000, but the price quickly declined. On May 25, when Bitcoin dropped to $106,000, panic peaked and the market began to reverse. This pattern repeats regularly.

According to analysts, the most popular options contract right now is a $300,000 bet on Bitcoin by June. This indicates continued optimism among some participants.

Bitcoin’s Mean Dollar Invested Age Metric (3 month). Source: Santiment
Bitcoin’s Mean Dollar Invested Age Metric (3 month). Source: Santiment

Whale Activity and Asset Withdrawals

Santiment recorded 18,782 transactions worth over $100,000 in a single day — the highest since January. These are signals of large players exiting the market, locking in profits near the top. At the same time, the number of Bitcoins on exchanges continues to decline — since the beginning of 2025, 147,160 BTC have been withdrawn. This may indicate a preference for cold storage.

Movement of Inactive Coins

The Mean Dollar Invested Age metric, which tracks the average age of assets, has been declining since mid-April. This indicates that older coins are being brought back into circulation and that the market is active. The average holding period for Bitcoins has decreased from 443 to 426 days. Such dynamics traditionally accompany stable growth phases.

Ratio of Positive and Negative Comments across X. Source: Santiment
Ratio of Positive and Negative Comments across X. Source: Santiment

MVRV: When Investors Are Ready to Take Profit

Meanwhile, the 30-day and 365-day MVRV indicators remain above zero. This means that both short-term and long-term investors are in profit. As a result, many are exiting their positions.

For comparison: on March 10 and April 7, both indicators were in negative territory, which is historically considered a favorable time to enter the market.

Bitcoin’s 30-day and 365-day MVRV (3 months). Source: Santiment
Bitcoin’s 30-day and 365-day MVRV (3 months). Source: Santiment

What’s Next

Now market participants are awaiting July 9 — the day when the White House may attempt to implement the postponed tariffs. Depending on the outcome of the proceedings, this event could either trigger a new rally or deepen the correction. Amid this uncertainty, traders are left to monitor crowd sentiment, whale activity, and supply dynamics on exchanges.

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This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.

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