Why is Bitcoin price down today?

Bitcoin’s price experienced a 1.4% decline to $102,460 on May 19, 2025, fueled by growing concerns surrounding the US economy. A significant surge in daily trading volume, up 94% to $66.6 billion, suggests increased seller activity. This downturn is attributed to several factors, including Moody’s downgrade of the US credit rating to Aa1 from Aaa, and a class-action lawsuit filed against Strategy, the largest corporate Bitcoin holder.

Moody’s downgrade, citing rising US debt and deficits, heightened macroeconomic uncertainty, impacting Bitcoin’s price. This, coupled with inflation fears stemming from potential tariff policies, rattled financial markets, increasing Treasury yields and triggering risk-off sentiment. The 30-year Treasury yield exceeding 5% further amplified these concerns. The lawsuit against Strategy, holding 576,230 BTC, introduces uncertainty about its financial stability and casts doubt on its Bitcoin accumulation strategy.

The price drop was accompanied by substantial liquidations in the derivatives market, exceeding $87 million in long Bitcoin positions within 24 hours, compared to $15 million in short liquidations. This mirrors the liquidation seen on April 10, preceding a 6.5% price drop. Total crypto liquidations reached over $674 million in 24 hours. Bitcoin’s open interest also increased sharply over the past 14 days, nearing its all-time high.

A bearish divergence is emerging between Bitcoin’s price and its relative strength index (RSI). While the price formed higher highs between May 9 and 19, the RSI formed lower highs, indicating weakening uptrend momentum. Resistance at the $104,600 to $109,000 range is also hindering further price increases. Analysts, such as AlphaBTC, suggest a potential correction to $100,000 or lower, depending on Bitcoin’s response to the $103,000 level. The situation highlights the interconnectedness of macroeconomic factors and the cryptocurrency market, underscoring the volatility inherent in Bitcoin investments.