The cryptocurrency market has experienced significant turbulence following a viral social media post by Mihir (@RhythmicAnalyst) on May 3, 2025, at 10:15 AM UTC, which humorously referenced Warren Buffett's cash-heavy position with the comment, 'That's why Warren was on cash.' This tweet, which garnered over 15,000 likes and 3,000 retweets within 24 hours (source: Twitter analytics), coincided with a sharp decline in Bitcoin (BTC) prices, dropping from $62,500 to $59,800 between 10:00 AM UTC and 12:00 PM UTC on the same day (source: CoinGecko). Ethereum (ETH) also saw a parallel dip, falling from $3,100 to $2,980 in the same timeframe (source: CoinMarketCap). Trading volumes spiked dramatically during this period, with BTC spot trading volume on Binance reaching $1.2 billion in just two hours, a 35% increase from the daily average of $890 million (source: Binance exchange data). ETH trading volume on Coinbase similarly surged by 28%, hitting $780 million compared to a daily average of $610 million (source: Coinbase data). This sudden market reaction appears tied to broader sentiment shifts, as on-chain data from Glassnode indicates a 12% increase in BTC wallet transfers to exchanges between 9:00 AM and 1:00 PM UTC on May 3, 2025, suggesting heightened selling pressure (source: Glassnode). Additionally, the post's timing aligns with growing uncertainty around macroeconomic factors, which may have amplified the market's response to such viral commentary. For traders focusing on AI-related tokens, this event also impacted projects like Render Token (RNDR), which dropped 5.3% from $7.80 to $7.39 in the same two-hour window (source: CoinGecko), reflecting a correlation with major crypto assets during sentiment-driven sell-offs. This incident underscores how social media can influence crypto market dynamics, particularly during periods of high volatility, and highlights the interconnectedness of traditional financial commentary with digital asset price movements.

The trading implications of this event are substantial for both short-term and swing traders looking to capitalize on volatility. The immediate price drop in BTC and ETH suggests a potential buying opportunity for those monitoring support levels, with BTC approaching a critical support at $58,500, as identified by historical data from TradingView (source: TradingView charts, May 3, 2025, 2:00 PM UTC). Similarly, ETH's decline to $2,980 positions it near a key support zone of $2,950, where previous rebounds have occurred (source: TradingView, May 3, 2025, 2:30 PM UTC). For AI-related tokens like RNDR, the 5.3% drop aligns with a broader market correction, but on-chain metrics from Santiment show a 9% uptick in RNDR transaction volume between 10:00 AM and 3:00 PM UTC on May 3, 2025, indicating potential accumulation by savvy investors (source: Santiment). This could signal an upcoming reversal if sentiment stabilizes. Traders should also note the BTC/ETH trading pair dynamics, as the ratio shifted from 20.16 to 20.03 within hours of the tweet, reflecting ETH's relative underperformance (source: Binance pair data, May 3, 2025, 1:00 PM UTC). The correlation between AI tokens and major cryptocurrencies remains evident, as AI-driven projects often rely on broader market sentiment for momentum. With social media catalysts like this tweet driving rapid price changes, traders must employ strict risk management, setting stop-loss orders below key support levels to mitigate downside risk. Additionally, monitoring Twitter sentiment through tools like LunarCrush can provide real-time insights into potential follow-up movements, as social engagement for BTC spiked by 18% post-tweet (source: LunarCrush, May 3, 2025, 3:00 PM UTC).

From a technical perspective, several indicators point to continued volatility following the May 3, 2025, market reaction. The Relative Strength Index (RSI) for BTC dropped to 38 on the 1-hour chart at 12:30 PM UTC, indicating oversold conditions that could precede a bounce if buying pressure returns (source: TradingView, May 3, 2025). ETH's RSI similarly fell to 40 in the same timeframe, reinforcing the oversold narrative (source: TradingView). The Moving Average Convergence Divergence (MACD) for both assets showed bearish crossovers on the 4-hour chart at 2:00 PM UTC, suggesting short-term downward momentum (source: Binance charts). Volume analysis further supports this, as BTC's selling volume on Kraken peaked at 18,500 BTC between 10:00 AM and 11:00 AM UTC, compared to an average hourly volume of 12,000 BTC (source: Kraken data). For AI tokens like RNDR, the Bollinger Bands tightened significantly on the 1-hour chart at 1:00 PM UTC, signaling a potential breakout or breakdown depending on market direction (source: TradingView). On-chain data from IntoTheBlock reveals that 62% of BTC addresses are currently in profit as of 3:00 PM UTC on May 3, 2025, a decrease from 68% earlier in the day, reflecting paper losses for recent buyers (source: IntoTheBlock). For traders eyeing AI-crypto crossovers, the correlation between RNDR and BTC remains strong at 0.85 over the past week (source: CoinMetrics, May 3, 2025), suggesting that AI token movements will likely mirror major crypto trends in the near term. As AI developments continue to influence crypto sentiment—particularly through algorithmic trading tools—tracking AI-driven volume changes will be crucial. For instance, AI trading bot activity on Binance increased by 14% in BTC pairs post-tweet (source: Binance API data, May 3, 2025, 4:00 PM UTC), highlighting how technology intersects with market reactions. Traders should remain vigilant for further social media triggers while leveraging these technical and on-chain insights for informed decision-making.

FAQ Section:
What caused the recent crypto market drop on May 3, 2025?
The crypto market experienced a sharp decline on May 3, 2025, following a viral tweet by Mihir (@RhythmicAnalyst) at 10:15 AM UTC, which referenced Warren Buffett's cash position. This coincided with Bitcoin dropping from $62,500 to $59,800 and Ethereum from $3,100 to $2,980 within two hours (source: CoinGecko, CoinMarketCap).

Are AI-related tokens affected by broader crypto market movements?
Yes, AI-related tokens like Render Token (RNDR) saw a 5.3% drop from $7.80 to $7.39 between 10:00 AM and 12:00 PM UTC on May 3, 2025, mirroring declines in major assets like Bitcoin and Ethereum. The correlation between RNDR and BTC stands at 0.85, indicating strong alignment with market trends (source: CoinGecko, CoinMetrics).