Crypto Market Faces Downward Trend: When Will the Bull Run Resume?
By Crispus Nyaga
May 17, 2025
The cryptocurrency market continued to exhibit a downward trajectory on Saturday, May 17, 2025, with many altcoins witnessing significant losses after a recent surge. Bitcoin (BTC), often the focal point of the market, has seen a noticeable decline; its price fell from a weekly high of $105,000 to approximately $103,000. ## Altcoins Struggle Amid Bitcoin’s Decline
Among the most affected cryptocurrencies during this downturn are Pi Network (PI), Bonk (BONK), Floki (FLOKI), and Pudgy Penguins (PENGU), all of which plummeted by over 10%. This bearish trend highlights Bitcoin’s crucial role as a market driver; typically, altcoins will rally alongside Bitcoin’s upward movements and decline when Bitcoin retreats. This pattern was especially evident when many altcoins surged in value following Bitcoin’s breach of resistance at $90,000, propelling it briefly to $105,900. The decline in altcoin value can also be attributed to profit-taking among investors who had previously capitalized on the recent price surge. For instance, Bonk has seen a 26% drop from its monthly high, despite an impressive increase of nearly 200% since its low in April. Similarly, Floki gained 162%, and Pudgy Penguins rose over 330%, only to face significant setbacks in the current market.
Broader Economic Concerns Impacting the Market
The ongoing decline in cryptocurrency prices can also be linked to growing concerns regarding overall market risks. While the United States managed to reach a truce with China, it still maintains a 30% tariff on various goods. Furthermore, the implementation of a baseline 10% tariff on most imports from the UK, coupled with stalled trade talks with Japan, adds to fears of a potential recession. Currently, Polymarket traders have estimated a 38% chance of a U.S. recession.
On Friday, after market hours, Moody’s, a leading credit rating agency, downgraded the U.S. credit rating. The agency cited concerns regarding the country’s significant public debt and the deteriorating conditions of U.S. fiscal policies as contributing factors to this decision.
Analyzing Future Market Movements
Despite the current downturn, analysts are examining Bitcoin’s patterns for indicators of a potential rebound. The daily chart suggests that Bitcoin is forming a bullish pennant pattern, characterized by a vertical line and a converging triangle. Additionally, Bitcoin exhibits a cup-and-handle pattern, which is commonly interpreted as a bullish continuation signal.
Bitcoin’s position above the 50-day moving average is a promising sign for investors, leading some to predict that it may bounce back and approach its all-time high of $109,300. A successful breach of this level could indicate further gains in the market, which would likely lead to a strong recovery for many altcoins.
Conclusion
In summary, the cryptocurrency market is currently navigating through a challenging period, with key players like Bitcoin facing downward pressure. As investors keep a close eye on economic indicators and technical patterns, the question remains: when will the bull run resume? For the moment, the signs suggest a cautious optimism as traders await confirmation of a sustainable rebound.
For ongoing updates and analyses, readers are encouraged to stay informed of market trends and potential changes that could influence the future of cryptocurrencies.
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