The situation in the cryptocurrency market today is as follows.

As you can see, on the scale of the day and week, many top cryptocurrencies gave a noticeable dip. XRP dropped in value the most during the week, with a result of minus 8.4 percent.

Why Bitcoin fell

The major cryptocurrency is trading around $27,500 this morning – lower than many traders expected last week.

In the case of the BTC chart, traders are looking for the right figures for the prospect of a rebound, meaning they look for similar situations in the market in the past and hope for a repeat of the situation in the future. For example, a trader under the nickname Captain Faibik, given the current situation, suggests that Bitcoin should bounce from the $27,300 line before it rises further.

Traditionally, it should be noted that even the most prominent traders' forecasts are not bound to come true. The latter think in terms of probabilities, so they try to justify them with charts. But in reality, the market of digital assets may behave in any possible way - and the drawings do not interfere with it.

A user named Crypto Busy has more pessimistic expectations – he thinks that BTC may well fall to the white line marked on the chart below. The trader cites lower investor activity along with a negative news backdrop due to overly high fees in the Bitcoin and Etherium blockchain.

Overall, the cryptocurrency has yet to produce a single instant rebound after collapsing below $30,000. From a technical analysis perspective, this is a bad factor for bulls. It means that BTC is not yet outweighed on the buyers’ side. Therefore, the longer it trades at current levels, the longer a new round of the bull run is delayed.

What’s going on with the Binance crypto exchange

The largest crypto-exchange has suspended BTC withdrawals several times since the weekend, citing “congestion” on the Bitcoin network. That said, analysts claim that Binance did move several large batches of coins between its wallets, which only added to traders’ concerns. However, the trading platform’s official Twitter account says this is standard procedure.

Bitcoin’s mempul or transaction queue for confirmation by miners has been really busy these past few days, which has ended with the cryptocurrency’s network fees rising to their highest in two years. What’s more, the day before, miners mined the first Bitcoin block since 2017, in which their commission income was higher than the income for the block search itself. We are talking about amounts of 6.75 and 6.25 BTC respectively.

We wrote more about this and other blockchain congestion factors in a separate article. We recommend reading it to get a better understanding of what is going on in the cryptocurrency world.

The increase in commissions was due to the Ordinals protocol, which allows you to create an analogue of NFT in the Bitcoin blockchain by adding unique information to the block. However, not too long ago, the protocol was “broken” by one developer who found a vulnerability in the project’s logic.

However, back to Binance. Despite claims that everything is supposedly fine with the exchange, the actions of its management in withdrawal policy have not pleased some digital asset lovers. For example, developer Peter Todd has stated that the trading platform has no significant problems – it can allegedly just add the option to change users’ withdrawal fees so that they can withdraw coins under any conditions, but for a bigger payout.

According to Cointelegraph's sources, Binance has proved unprepared for rapid changes in commissions on the Bitcoin network. This is bad, and the exchange needs to address the problem urgently. Still, when the price of BTC rises sharply again, the hype around the cryptocurrency will lead to another mempool congestion. Therefore, Binance needs to prepare to handle more requests from users.

By the way, the exchange did that yesterday by introducing a flexible BTC withdrawal fee. As a result, after that the figure reached the equivalent of $28 per coin withdrawal.

When CPI data will be published

On Wednesday, May 10, one of the most important indicators for the US economy, the Consumer Price Index (CPI), will be released in April, which shows inflation in the country. If the CPI is lower than forecast, it will give the Federal Reserve the opportunity to be more lenient in setting the benchmark lending rate.

For now, it is assumed that the Fed will get stuck with raising the benchmark interest rate. Accordingly, it is likely to remain at the same level at the next FOMC meeting on 14 June.

If the US Fed is satisfied with the next CPI publication, the likelihood of a cut in the lending rate by the end of the year will increase. In such an environment, markets are expected to rise – including high-risk assets like Bitcoin.

The publication of the CPI will also lead to a significant increase in volatility in the digital asset market. This means that cryptocurrencies could show rapid movement on the chart with large trading volumes by the end of the week.

Miners are still selling coins

The effects of the 2022 crisis are still affecting miners. Despite Bitcoin’s price rise over the past few months, their reserves are still in a downtrend. That is, miners are gradually selling BTC at the market rate, which is another reason for the value of the first coin to fall.

At the moment, miners have about 1.826 million BTC in their wallets – which is the minimum since July 2021. A reversal in the trend in the chart above would be another indicator of the start of a new bullrun wave. Therefore, it is something to keep an eye on as well.


It looks like the cryptocurrency market is in for a bit of a crisis, which will be a logical step after the strong growth the day before. The magnitude of what is happening will also be determined by macro data, as the base rate decision will be changed based on it. Therefore, crypto investors should keep an eye on what is happening and make decisions accordingly.


Look for even more interesting things in our crypto-chat of former millionaires. There we also talk about other topics that affect the crypto world in one way or another and bring the next bull run closer.