Bitcoin Dips Below $77K as Liquidations Exceed $500M
Bitcoin experienced a drop to its lowest level in more than two weeks, driven by pervasive macroeconomic uncertainties stemming from the US-Iran conflict, prompting traders to scale back their positions. The original cryptocurrency saw a decrease of as much as 2.2% to $76,551 on Monday, reaching its lowest level since May 1, before regaining a portion of the losses incurred. At 7:15 a.m. in London, it was observed to be approximately 76,800. Other tokens, including Ether and Solana, also faced declines. Bitcoin’s price saw a downturn as the cryptocurrency market encountered approximately $500 million in liquidations of bullish positions within a mere 15 minutes during early trading in Asia on Monday, according to reports.
Approximately $590 million in bullish positions were liquidated in the 24 hours leading up to early European trading, according to data. The token has encountered downward pressure in recent days, shaped by the ongoing uncertainty related to the US conflict with Iran, which has affected risk assets. Last week represented the inaugural occurrence since late January in which US-listed spot Bitcoin exchange-traded funds recorded outflows surpassing $1 billion. “Bitcoin’s pullback is a macro story,” stated Rachael Lucas. “Risk appetite has been recalibrated, and Bitcoin is responding accordingly.”
On Monday, oil prices saw an increase, coinciding with a significant rise in bond yields, while Asian equities encountered a decline. The current negative sentiment has arisen due to inadequate progress in the reopening of the Strait of Hormuz, an essential route for trade. President Donald Trump stated that the “clock is ticking” for Iran to reach an agreement. Liquidations in Bitcoin transpired as the cryptocurrency penetrated a crucial support threshold around $77,800. Structural support remains between $76,000 and $76,800, Lucas stated, while a close above $80,000 “would be the first meaningful signal that selling pressure is exhausting.”
Bearish positions were prominently concentrated at $77,500, with traders purchasing around $38 million in Bitcoin put options scheduled to expire on May 18, according to Deribit data, underscoring a dominant negative sentiment. The sudden drop in Bitcoin prices “appears to have triggered a stop run in the absence of any macro headlines,” stated Sean McNulty. The weakness was “compounded by lingering downside hedging from last week,” he noted.
