[Daily News Brief] Bitcoin Market Retracement: Investor Anxiety. Analysts Discuss the Future of Digital Currencies

The cryptocurrency market has experienced a significant decline in recent times, with investors and analysts seeking answers. By May 20, 2025, Bitcoin and other cryptocurrencies experienced a significant decline after a brief rebound. This fluctuation has raised questions about market sentiment and has had a profound impact on the future of digital currencies. On May 15, Bitcoin rose briefly in the morning but failed to break through its previous high, and then lost not only the morning gains in the afternoon, but also entered a downward state, reflecting a broader trend that affected other altcoins. According to data, the market value of altcoin markets, including Ethereum, fell by 2.67% in the same day, while the decline excluding Ethereum was almost the same at 2.66%. Such a decline shows that investors' interest in risky assets has weakened in the short term. Meanwhile, the value of cryptocurrencies remains closely linked to traditional stock markets. On May 15, Bitcoin's decline coincided with the Nasdaq Composite Index finally ending at a flat market after experiencing a 0.60% increase. This correlation underlines the vulnerability of cryptocurrencies as risky assets, especially as macroeconomic concerns linger on the market. A number of macroeconomic factors have led to the formation of this environment. Tariff issues have surfaced despite a recent deal between the United States and China, with analysts warning of possible “stop and go” tariff policies that could disrupt supply chains and lead to stagflation—that is, slow economic growth, rising prices and increased unemployment. In addition, the Federal Reserve is cautious about interest rates, and continued signs of inflation suggest that monetary policy may tighten, which may further curb investors' demand for digital assets. In this turbulent market environment, the cryptocurrency sector has also made significant progress in regulation. The U.S. Senate has advanced the GENIUS bill, a bipartisan bill aimed at establishing a regulatory framework for stablecoins, passed by 66 to 32. The progress of this legislation marks an important step in bringing cryptocurrencies into mainstream financial regulation. Senator Mark Warner, who supported the bill, stressed the urgency of establishing a regulatory framework and pointed out that the United States "cannot watch anymore." In contrast, competition among cryptocurrency trading platforms is also becoming increasingly fierce. True Markets, a new exchange co-founded by former Goldman Sachs and Coinbase executives, has announced the launch of a trading app focused on the Solana blockchain and successfully raised $11 million. True Markets’ goal is to provide a non-custodial transaction experience that allows users to buy and sell various tokens to meet the needs of retail customers. Co-founder Vishal Gupta stressed that True Markets aims to provide a better user experience to cope with a crowded market dominated by large players such as Coinbase. Amid these market volatility and regulatory challenges, Bitcoin’s future remains uncertain. The interaction between macroeconomic factors and legislative progress may affect the trend of digital assets in the coming months. invest