Crypto Market Volatility Peaks: Top Reasons Behind and What Next?

Why Crypto Market Volatility Peaks Today: What Traders Should Expect?

The global crypto market is stuck in a tight range today. Over the last 24 hours, the market cap has moved slightly between $3.47 trillion and $3.44 trillion. This small price movement shows that traders and investors are unsure about the next direction. Trading volume is currently around $125 billion, and many are waiting for stronger signals before making big moves.

Why Crypto Market Volatility Peaks Today? 

Bitcoin Price Indicates Triple Top Rejection Pattern: Bitcoin is also facing the same uncertainty. After hitting close to $108,000, the BTC price has dropped to around $106,347.10. The total value of Bitcoin is now $2.11 trillion. This pullback is not sudden. In fact, Bitcoin has shown the same behavior before. According to TradingView, it has faced rejection three times at the $108K level — once in December 2024, again in January 2025, and now on May 21, 2025. 

Source: TradingView

This has been termed a "triple top" and is an indication in most instances that investors are losing faith and selling at that level. As often as Bitcoin had reached that level, the rally had been extinguished, resulting in a bearish candle, and prices dropped once more. This shows that fear is growing among the players.

ETF Delay & SEC Lawsuit Pile Pressure on Crypto Market: Continuing with the bad news, the U.S. SEC has delayed approving crypto ETFs yet again — this time, for Dogecoin and XRP. Yesterday, Solana ETFs were delayed. These delays indicate that the SEC is still not ready to approve new ETF products on altcoins. This has put the industry in an even more anxious state, especially since most investors expected such ETFs to receive fresh funds.

In another big event, the SEC has filed a lawsuit against Unicoin and its top team. The case says that Unicoin raised $100 million from investors by lying about how their tokens were backed by real estate. The SEC claims thousands of investors were misled. This has shaken trust in new projects and might make people more cautious going forward.

Source: SEC

Milei Dissolves LIBRA Scandal Task Force Amid Controversy: At the same time, Argentina’s President Javier Milei has closed down a task force that was investigating the LIBRA token scandal. LIBRA had jumped to $5 after Milei's promotion, but quickly fell to zero. Many suspected insider trading. Shutting the investigation has added more questions and controversy.

What’s Next for the Market? Fear and Greed Signal Hope

Despite the recent fall in price and confidence, the crypto market sentiment is still in the "Greed" zone. Today’s Fear and Greed Index score is 70, slightly lower than yesterday’s 71, and last week’s 73. A month ago, the same index was in "Fear" at 39. This shows that many investors still believe the sector may recover soon, even if prices are not moving much.

Some big events coming this week might affect the market outlook:

• Thursday: U.S. S&P Global Manufacturing PMI and April Home Sales

• Friday: New Home Sales Data

• All Week: 14 planned speeches by U.S. Federal Reserve officials

If these updates hint at rising inflation or possible interest rate hikes, it could shake the entire crypto. Conversely, however, any respectable surprise can make prices go upward again.

Conclusion

Today's crypto market is sending confusing signals. On the one hand, Bitcoin cannot quite clear its resistance level, and ETF news delays are scaring off investors. On the other hand, sentiment remains upbeat, and future figures could possibly be in favor of the sector. Meanwhile, traders are observing carefully to see whether this break is going to be a larger movement — either up or down.