Why Is Crypto Up Today – May 16, 2025?

The crypto market has seen another shift today: though the market cap is down, most coins have seen their prices increase in a spot-driven rally. The cryptocurrency market capitalization fell 0.9% over the last 24 hours, now standing at $3.45 trillion. The total crypto trading volume is at $131 billion at the time of writing.

Why is Crypto Up Today? Crypto Winners & Losers

While all top 10 coins recorded price decreases at this time yesterday, only one is in the red now. Namely XRP fell 2.3% to the price of $2.42.

The category’s best performers are Ethereum (ETH) and Tron (TRX), which increased by 2.1% each, trading at $2,602 and $0.2757, respectively. Notably, this is ETH’s highest point in the last day.

After reaching a daily high of $104,273, Bitcoin (BTC) retreated back to $103,928, but it is still up 1.9% in a day.

Story (IP) is the highest gainer in the top 100 category, having appreciated 12.8% to $4.97. At the same time, Quant (QNT) fell the most: 3.9% to the price of $93.94.

The market has seen a substantial increase in investor interest. According to a recent report by River Financial, companies across various industries have added 157,000 BTC, equivalent to $16 billion, to their balance sheets this year alone. Michael Saylor’s Strategy (ex-MicroStrategy) accounts for more than 75% of that.

One of the latest to announce its Bitcoin accumulation strategy is Chinese consumer company DDC Enterprise. It plans to add 100 BTC to its balance sheet immediately, aiming to accumulate 500 BTC within six months and 5,000 BTC within 36 months.

Ruslan Lienkha, Chief of Markets at FinTech platform YouHodler, commented that the upward momentum in equity markets has moderated after the end of tariff negotiations. Short-term traders began locking in profits, previously triggering short-term corrections.

The pullback was a correction within a broader medium-term uptrend. This has now turned upwards. “However, ongoing global economic uncertainty and persistently high interest rates in the US may act as headwinds, potentially capping the upside potential of this trend,” Lienhka says.

‘Anything Over $100,000 is a Win’

James Toledano, Chief Operating Officer at Unity Wallet, notes that BTC seems to be moving in line with market expectations. It has kept “a tight trading range” near $104,000 over the past week, suggesting a phase of healthy consolidation. Recent dips seem not to be a structural concern but normal market volatility.

“Anything over $100,000 is a win as we look for stabilization and price support at this level,” Toledano says.

Furthermore, according to the latest Glassnode report, since the $75,000 price low in April, Bitcoin markets are experiencing a rally, with sideways accumulation phases between each move higher.

Bitcoin’s rally to $104,000 seems to be spot-driven, in combination with strong on-chain accumulation and off-chain flows. The demand is primarily via spot exchange-traded funds (ETFs) and major spot exchanges like Coinbase.

Toledano adds that Coinbase’s inclusion in the S&P 500 “affirms that crypto is no longer either peripheral or a financial pariah looked down upon—it is a maturing sector with systemic and growing relevance.” This development is expected to drive additional investor inflows. However, the exchange is reportedly facing an investigation by the SEC over the accuracy of its reported user numbers.

Additionally, the US Consumer Price Index (CPI) data from May 13, 2025, suggested cooling of inflation, signaling that the Federal Reserve could announce rate cuts later this year, crypto exchange HTX commented. It warned, however, that a debt ceiling agreement in July or August may “lead to a tightening of system liquidity once again, potentially exerting downward pressure on risk assets.”

The Bitcoin options’ near-term implied volatility decreased from 65% prior to the CPI release to 58%. This shows expectations of short-term price stability. The ETH options market show a longer-dated bullish structure, with demand for $4,000-$5,000 call options expiring in December, “suggesting institutional investors are positioning early for the next potential rally.”

Levels & Events to Watch Next

While the macro trend supports long-term bullishness, short-term charts suggest caution. Though BTC managed to move above $103,400, making a bullish turn, there is still a potential for it to turn back and fall as low as $100,700 or below the psychologically important $100,000 level.

Per the Glassnode researchers, a key accumulation zone emerged between $93,000 and $95,000. It will likely act as a strong support level should there be a short-term market pullback. It will be “a demand zone where investors are likely to see value once again.”

Moreover, the Fear and Greed Index fell from 71 seen yesterday to 69 today. This suggests increased optimism, confidence, and buying activity. However, it may lead to overconfidence and overvaluation.

Meanwhile, US-listed spot Bitcoin ETFs saw $115 million net inflows on Thursday. Yet, it’s a mixed picture. While BlackRock saw $410 million in inflows, ARK 21Shares recorded $132 million in outflows.

Per Glassnode, “ETF flows show that institutional interest in Bitcoin remains relatively robust, with inflows being of a similar magnitude to those seen during previous market rallies in 2024.”

Notably, the weekly average net inflows peaked at $389 million a day on 25 April. This coincided with the surge in spot-driven buying and supported the rally to $104,000. Inflows have since declined to some $58 million a day.

Meanwhile, per HTX, in the short term, “the high percentage of short-term holders in profit and the concentration of leveraged positions imply that any breakout or breakdown of key technical levels could trigger concentrated profit-taking and liquidation cascades, leading to heightened volatility. The overall market structure remains defined by a medium-term structural bull trend combined with a short-term consolidation phase.”

Quick FAQ

Both crypto and stock markets are seeing upward movement today, due to institutional interest, policy developments, and investor sentiment. The former seems to be showing more investor enthusiasm. Nonetheless, the S&P 500 is up 0.4% today, the Nasdaq-100 has increased by 0.078%, while the Dow Jones Industrial Average has risen by 0.65%.

Continued inflows into spot Bitcoin ETFs suggest long-term investor confidence, while long-term holders (LTH) still accumulating is also a bullish signal. Nonetheless, the greed is rising, and BTC is nearing its all-time high, where strong resistance awaits it. The rally may face headwinds if greed rises further, ETF inflows slow, and/or macro conditions shift.

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