- Crypto market sees price correction as US-China tariff news sends BTC below $101K; $521M liquidated
- Bitcoin recovers to $102K, ETH to $2.45K; altcoins XRP, BNB, SOL also bounce off support levels
- Fear & Greed Index at 71 (Greed) signals bullish appetite persists despite market pullback
The cryptocurrency market, led by Bitcoin, experienced a slight correction on Monday, May 12. Although analysts predicted a pullback after the latest price surge, tariff news out of the US triggered the correction, which saw BTC drop below $101,000 after briefly climbing above $105,000 on the same day.
On Monday, the US government announced it had agreed to a 90-day tariff reduction with China. This news, paradoxically, led to a swift crypto market correction, with a significant $521 million in long positions liquidated.
CoinMarketCap’s data show that the total cryptocurrency market capitalization dropped to $3.25 trillion after reaching a season’s high of $3.37 trillion.
Related: Bitcoin (BTC) Price Prediction for May 14
Altcoins ETH, XRP, BNB, SOL Also See Pullbacks but Maintain Bullish Outlook
Not just Bitcoin, other top cryptocurrencies also experienced pullbacks. Ethereum (ETH) price lost 8%, dropping from a $2,625 local high to $2,407 in less than 24 hours.
XRP, BNB, and Solana also experienced pullbacks. However, all the listed cryptocurrencies maintained bullish sentiments and have since bounced off support levels to signify existing bullish momentum in the altcoin market.
For instance, Bitcoin has been trading around $102,700 at the time of writing, reflecting a 1.75% recovery from Monday’s low, while Ethereum traded for $2,455, confirming an underlying bullish momentum in the cryptocurrency’s ecosystem.
At the same time, the crypto market’s Fear and Greed Index is 71, highlighting a slightly greedy sentiment among participants. However, it also reflects an existing bullish appetite, considering the greed sentiment is not extreme.
Price Corrections Common; Experienced Traders Eye Opportunities
Corrections and pullbacks are common in the crypto market, especially during significant bull runs. They occur when traders sell their assets for profit or out of fear of a potential market reversal. Specific triggers often initiate pullbacks, like the highlighted 90-day tariff reduction agreement between the US and China in this instance.
Related: US-China Trade Peace: “Perfect Storm” for Bitcoin Rally
However, experienced traders use the opportunities to restock their portfolios, buying digital assets at lower prices and preparing for more profitable adventures in a sustained bull run.
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