Bitcoin's Rollercoaster Week: Ethereum Dips Amid Liquidations and Inflation Concerns

Bitcoin Hits $106,000 Before Tumbling Back

Bitcoin experienced a volatile start to the week, surging to $106,000 before slipping 3.8% to $102,450 within hours on Monday. This dramatic movement led to $178.46 million worth of liquidations in the past 24 hours, according to CoinGlass, with an almost equal split between long and short positions.

The turbulence comes amid broader economic concerns, including inflation warnings from the Federal Reserve and Walmart’s announcement of price hikes due to ongoing trade tariffs. These factors have added pressure to the crypto market, which has seen significant fluctuations in recent days.

Adding to the drama, MicroStrategy, led by Bitcoin advocate Michael Saylor, faced a class-action lawsuit alleging investor misrepresentation. Hours later, the company announced a bold acquisition of $764.9 million worth of Bitcoin, underscoring its unwavering commitment to the cryptocurrency.

Ethereum Tumbles 4.3% Amid Liquidations

Ethereum, the second-largest cryptocurrency, also faced a challenging start to the week, dropping 4.3% from $2,500 to $2,400 on Monday. This decline triggered $264.4 million worth of Ethereum liquidations, with $205.28 million of these being long positions, according to CoinGlass.

The dip follows a strong month for Ethereum, which had been riding a wave of optimism across the crypto sector. However, inflation concerns and the Federal Reserve’s decision to maintain its benchmark interest rate at 4.25% to 4.50% have dampened market sentiment.

Why Inflation and Tariffs Matter for Crypto

The Federal Reserve’s warnings about rising inflation and unemployment risks, coupled with Trump’s tariff policies, have created uncertainty in global markets. Walmart’s decision to raise prices further highlights the impact of these tariffs on consumer goods.

For cryptocurrencies like Bitcoin and Ethereum, these macroeconomic factors play a significant role. Inflation fears often drive investors toward risk-on assets like crypto, but they can also lead to heightened volatility, as seen in this week’s price swings.

Meme Coins Outperform Amid Renewed Risk Appetite

While Bitcoin and Ethereum faced challenges, meme coins have emerged as unexpected winners. Driven by retail enthusiasm and social media virality, these speculative assets have outperformed major Layer-1 tokens, signaling a return of risk-on sentiment in the crypto sector.

Meme coins had previously seen steep corrections following President Trump’s January inauguration, but renewed investor appetite has reignited their momentum. This trend underscores the speculative nature of the crypto market and its ability to defy broader economic pressures.

Bitcoin’s Global Recognition Gains Traction

In a notable development, an Australian judge ruled that Bitcoin is a form of money, potentially exempting it from capital gains tax. This decision could pave the way for broader adoption and regulatory clarity, further solidifying Bitcoin’s status as a global financial asset.

Meanwhile, El Salvador continues to benefit from its Bitcoin holdings, which recently surged in value to over $644 million following a 30 BTC purchase last month. President Nayib Bukele remains bullish on the cryptocurrency, showcasing its potential as a national investment strategy.

What’s Next for Bitcoin and Ethereum?

Despite recent volatility, Bitcoin remains just 5.8% below its all-time high of $108,786, achieved in January. Ethereum, however, is still 50.9% away from its peak of $4,878 in 2021. As inflation concerns persist and global trade dynamics evolve, the crypto market is likely to remain unpredictable.

For young, crypto-curious investors, staying informed about macroeconomic trends and regulatory developments will be key to navigating this dynamic landscape. Whether it’s Bitcoin’s resilience or Ethereum’s potential for recovery, the coming weeks promise to be pivotal for the crypto sector.

Aviso legal
Este conteúdo é fornecido apenas para fins informativos e pode abranger produtos que não estão disponíveis na sua região. Não se destina a fornecer (i) aconselhamento ou recomendações de investimento; (ii) uma oferta ou solicitação para comprar, vender ou deter ativos de cripto/digitais, ou (iii) aconselhamento financeiro, contabilístico, jurídico ou fiscal. A detenção de ativos de cripto/digitais, incluindo criptomoedas estáveis e NFT, envolve um alto grau de risco e pode flutuar muito. Deve ponderar cuidadosamente se o trading ou a detenção de criptoativos/ativos digitais são adequados para si, tendo em conta a sua situação financeira. Informe-se junto do seu consultor jurídico/fiscal/de investimentos para esclarecer questões relativas às suas circunstâncias específicas. As informações (incluindo dados de mercado e informações estatísticas, caso existam) apresentadas nesta publicação destinam-se apenas para fins de informação geral. Embora tenham sido tomadas todas as precauções razoáveis na preparação destes dados e gráficos, a Binance não assume qualquer responsabilidade por erros de factos ou omissões aqui expressos.

© 2025 OKX. Este artigo pode ser reproduzido ou distribuído na sua totalidade, ou podem ser utilizados excertos de 100 palavras ou menos deste artigo, desde que essa utilização não seja comercial. Qualquer reprodução ou distribuição do artigo na sua totalidade deve indicar de forma clara: “Este artigo é © 2025 OKX e é utilizado com permissão.” Os excertos permitidos devem citar o nome do artigo e incluir a atribuição, por exemplo, "Nome do artigo, [o nome do autor, caso aplicável], © 2025 OKX." Não são permitidas obras derivadas ou outros usos deste artigo.

Artigos relacionados

Ver mais
Memecoins generic thumb
Memecoins
Web3

What is a memecoin supercycle: real or a reality check?

Is the memecoin supercycle real? Instead of being an idealized take on how liquidity in the crypto market will flow, the concept of a memecoin supercycle has recently gained traction as crypto traders eagerly anticipate the idea of a memecoin bull market driven by memecoin excitement. The data seems to back this theory too, as the crypto market has witnessed a steady rise in memecoin adoption in recent months as traders choose to purchase and hold onto digital assets inspired by internet culture and memes. Does the memecoin supercycle theory hold weight or is it just another crypto supercycle reality check for bullish traders?
23/05/2025
9
trends_flux2
Altcoin
Trending token

LayerEdge (EDGEN) Airdrop: How to Claim and Why It Matters for Web3

Introduction: LayerEdge and the $EDGEN Airdrop Opportunity LayerEdge, a decentralized Web3 infrastructure project, is making waves in the blockchain ecosystem with its innovative approach to cross-chain data processing and modular scalability. As part of its growth strategy, LayerEdge has launched an exciting $EDGEN token airdrop campaign, offering early adopters and contributors a chance to claim rewards for their engagement. With the claim window officially opening on June 2, 2025, this initiative is a key milestone for the project and its community.
9/06/2025
trends_flux2
Altcoin
Trending token

Ethereum, Solana, and XRP: Cryptos Poised to Outperform Bitcoin in 2025

Introduction: Bitcoin’s Spotlight and the Rise of Altcoins Bitcoin (BTC) has been the dominant force in the cryptocurrency market, recently hitting a new all-time high of $112,000 on May 22, 2025. However, as the second half of the year unfolds, attention is shifting to three altcoins—Ethereum (ETH), Solana (SOL), and XRP—that are showing signs of outperforming Bitcoin. These tokens are gaining traction due to technological upgrades, regulatory developments, and unique use cases that could drive their value higher.
9/06/2025
trends_flux2
Altcoin
Trending token

Pi Network Price Prediction: Can Mainnet Rollout and User Growth Drive a Breakout?

Pi Network Price Prediction: A Project at the Crossroads As the cryptocurrency market continues to evolve, Pi Network (PI) has emerged as a focal point for traders and analysts, with its price movements and ecosystem developments sparking intense debate. With the token trading at $0.73 as of June 5, 2025, Pi Network’s future hinges on critical milestones, including its mainnet rollout, user adoption, and ecosystem growth.
9/06/2025
trends_flux2
Altcoin
Trending token

Circle's Explosive IPO: Stablecoin Giant Surges 167% in NYSE Debut

Circle’s IPO Marks a Milestone for Crypto Companies Circle Internet Group, the issuer behind the USDC stablecoin, made a historic debut on the New York Stock Exchange (NYSE) on June 5, with its shares skyrocketing 167% during the first trading session. The IPO, which raised nearly $1.1 billion, signals growing investor appetite for stablecoin-focused businesses and sets a precedent for other crypto companies eyeing public listings.
9/06/2025
trends_flux2
Altcoin
Trending token

James Wynn’s $25M Bitcoin Liquidation: A Cautionary Tale for Leveraged Traders

James Wynn’s $25M Bitcoin Liquidation: What Happened? In the high-stakes world of cryptocurrency trading, James Wynn has once again made headlines—this time for losing $25 million in a leveraged Bitcoin position. Known for his audacious trades, Wynn’s latest gamble involved a 40x leveraged long position on Bitcoin, which was liquidated after the market turned against him. The fallout wiped out 240 BTC, valued at approximately $25 million, and left Wynn exposed to further losses.
9/06/2025
Ver mais