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Bitcoin Falls Below $77,000 on US-Iran Uncertainty; ETF Outflows Top $1 Billion

Source

Korea Economic Daily

Summary

Bitcoin fell into the $76,000 range as uncertainty surrounding the US and Iran weighed on risk assets.
US-listed spot Bitcoin ETFs saw more than $1 billion in outflows last week.
Analysts see Bitcoin's structural support in the $76,000 to $76,800 range and say a close above $80,000 could signal that selling pressure is fading.

Forecast Trend Report by Period

More than $1 billion exited Bitcoin ETFs last week

Structural support seen between $76,000 and $76,800

Bitcoin slides back into the $76,000 range

Bitcoin fell into the $76,000 range, touching its lowest level in two weeks.

Bitcoin dropped as much as 2.2% over the past 24 hours to $76,551 on May 18, the lowest since May 1. It later trimmed some losses and traded near $76,800 as of 7:15 a.m. in London. Other cryptocurrencies, including Ether and Solana, also declined.

Bloomberg attributed the drop to investors cutting Bitcoin holdings as Middle East tensions persisted and macroeconomic risks spread.

CoinGlass data cited by Bloomberg showed about $500 million of bullish Bitcoin positions were liquidated across the crypto market. Liquidations over the 24 hours through the early European session totaled about $590 million.

Bitcoin has come under pressure as uncertainty over a potential war between the US and Iran weighs on risk assets. US-listed spot Bitcoin exchange-traded funds saw more than $1 billion of outflows last week, the first weekly withdrawal of that size since late January.

"The decline in Bitcoin is a macro story," Rachel Lucas, an analyst at BTC Markets, said. Risk appetite is being repriced, and Bitcoin is moving in line with that, she added.

Oil prices rose, while bond yields surged. Most Asian stock markets also fell, with South Korea the exception after shares there edged up following a sharp drop on Friday.

Lucas said Bitcoin's structural support sits between $76,000 and $76,800. A close above $80,000 would be "a meaningful signal that selling pressure is being exhausted," she said.

Deribit data showed bearish bets on Bitcoin were concentrated around $77,500. Traders bought about $38 million of Bitcoin put options expiring on May 18, reflecting negative sentiment.

"The sudden drop in Bitcoin triggered stop-loss selling without a specific macroeconomic catalyst," said Sean McNulty, FalconX's head of Asia-Pacific derivatives trading. He added that downside hedging since last week had exacerbated the weakness.

Kim Jeong-a, contributing reporter, kja@hankyung.com

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