Crypto Cools Off Briefly, But the Uptrend Remains Intact

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Bitget Academy2025/05/16 05:20

By:Bitget Academy

Bitcoin recently dipped slightly below $101,000 but quickly bounced back above $103,000, continuing to hold strong near record levels. This small decline follows a significant rally over recent weeks. While Bitcoin stayed relatively steady, many alternative cryptocurrencies—like Aptos, Avalanche, and Uniswap—dropped 6–7%, leading to a broader market decline of about 3%.

Experts say this isn’t a cause for concern. They describe the drop as a normal correction in an ongoing upward trend. Traders have been locking in profits after the big rally, which can lead to short-term dips, especially when trading volumes are low. These movements are often seen as just part of normal market activity.

Underlying financial signals remain positive. U.S. economic data showed mixed results, but didn’t shake the traditional markets. Analysts believe the crypto market is being supported by growing credit activity in Western economies, not just by central bank policies or liquidity from China.

Looking ahead, experts expect financial conditions to improve into the summer, thanks to a weakening U.S. dollar. Historically, this has boosted Bitcoin’s price. However, conditions may become more uncertain after July, as economic trends could shift again.

Source: CoinDesk

Futures Market Updates

In the past 24 hours, BTC futures saw a notable increase in both open interest (+2.33%) and trading volume (+46.20%), suggesting renewed bullish activity and market participation. In contrast, ETH futures experienced a decline in open interest (-2.36%) despite a 20.18% rise in volume, indicating potential profit-taking or cautious sentiment. BTC had a more balanced liquidation profile compared to ETH, which saw significantly higher long liquidations, reflecting greater volatility or overleveraged positions. Both markets maintained near-even long/short ratios, with ETH slightly more short-leaning. Funding rates remained positive but low for both, with ETH slightly higher at 0.0071%.

BTC Futures Updates

Total BTC Open Interest: $67.42B (+2.33%)

BTC Volume (24H): $120.35B (+46.20%)

BTC Liquidations (24H): $47.08M (Long)/$27.56M (Short)

Long/Short Ratio: 49.92%/50.08%

Funding Rate: 0.0042%

ETH Futures Updates

Total ETH Open Interest: $30.82B (-2.36%)

ETH Volume (24H): $102.82B (+20.18%)

ETH Liquidations (24H): $79.00M (Long)/$35.15M (Short)

Long/Short Ratio: 49.27%/50.73%

Funding Rate: 0.0071%

Top 3 OI Surges

XCN: $25.16M (+129.67%)

BOBA: $2.31M (+65.15%)

HEI: $12.92M (+61.33%)

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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