Current State of the Crypto Market

Today, Bitcoin encountered significant hurdles as it struggled to break the $110k resistance level, leading to a considerable sell-off across the crypto market. This turmoil raises questions about whether geopolitical tensions or profit-taking are influencing market behavior. Some speculate whether this could indicate a transition to a new all-time high or if a new bear market is imminent.

Key Factors Influencing Bitcoin’s Performance

A press statement from the Federal Reserve confirmed that interest rates would be maintained at 4.25%-4.50%, leading to a shift in market sentiment from bullish to bearish. This, coupled with a rise in trader liquidations, added to the downward momentum.

FOMC minutes drop at 2PM EST today. Markets are stalling like a boomer trying to post a meme. — Chapo (@El_Crypto_Chapo) May 28, 2025

Furthermore, President Donald Trump’s recent tariffs—ranging from 10% on imports from various countries to a staggering 145% on Chinese goods—have contributed to market volatility.

🚨BREAKING: President Trump is slapping the European Union with a 50% tariff starting June 1st. — Benny Johnson (@bennyjohnson) May 23, 2025

Additionally, Nvidia’s restrictions on GPU sales to China have exacerbated the challenges for the crypto landscape, resulting in substantial sell-offs in the tech sector.

Technical Analysis of Bitcoin

The technical indicators suggest mixed signals. While Bitcoin traditionally experiences volatility, the recent formation of lower highs on the Relative Strength Index (RSI) may indicate significant selling pressures ahead. If Bitcoin fails to reclaim its previous high, we could see a further decline to around the $70k mark.

Despite these challenges, the overall sentiment remains cautiously optimistic, as Bitcoin historically rebounds strongly from downturns.