Bitcoin Plunges Below $77K as ETFs Bleed $1B: Is the Crypto Rally Over?

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<a href="https://jpyxx.com/btc-usd/">Bitcoin</a> price falls under $77K as ETFs record $1B outflows

Over the past week, U.S. Bitcoin ETFs experienced net outflows exceeding $1 billion, indicating that institutional investors are currently selling off their Bitcoin holdings.

Summary

  • U.S. spot Bitcoin ETFs recorded over $1 billion in cumulative net outflows last week as institutional demand for crypto exposure weakened sharply.
  • Bitcoin fell below the $77,000 support level after over $661 million in crypto liquidations wiped out heavily leveraged bullish positions.
  • Rising inflation concerns and WTI crude prices above $107 added pressure on risk assets as traders reduced expectations for Fed rate cuts.

Recent data from SoSoValue shows a sudden shift in Bitcoin activity. After weeks of consistent deposits that boosted its price above $80,000 earlier in May, there’s now a noticeable increase in withdrawals.

Spot Ethereum ETFs continued to experience outflows last week, losing $255 million as institutional interest in crypto generally declined. This extends a recent trend of daily net losses for these funds.

Recent Bitcoin (BTC) price drops happened as the overall market also went down. On Monday, Bitcoin fell below $77,000, a price level many investors watch closely. Over the last 24 hours, BTC lost over 4% of its value, going from around $82,000 to as low as $76,500 before settling back near $77,000.

Over the last 24 hours, crypto traders lost positions worth over $661 million, according to data from CoinGlass. The vast majority of these losses – almost 95% – came from traders who bet prices would go up (long positions).

Bitcoin’s price dropped, partly because growing worries about inflation and high oil prices made investors less interested in risky investments.

Wholesale prices jumped 6% compared to a year ago, and consumer prices rose 3.8% – higher than predicted. These increases are fueling concerns that the Federal Reserve might hold interest rates high for an extended period.

As a researcher tracking energy markets, I’ve observed that WTI crude oil prices recently surpassed $107 a barrel. This increase seems to be driven by a couple of factors: talks between the U.S. and Iran have stalled, and there are ongoing disruptions in the Strait of Hormuz. These issues are adding to existing concerns about rising inflation worldwide.

When interest rates go up, it usually becomes harder to quickly buy or sell investments, and people tend to prefer safer options like bonds over more risky ones, such as cryptocurrencies.

Even though Bitcoin’s price has recently dropped, its overall trend, when looking at daily price movements, still appears fairly positive.

As a crypto investor, I’m watching Bitcoin closely, and it’s dipped back below that important $80,000 level. We saw it try to break through resistance around $82,000 to $84,000 a little while ago, but it couldn’t quite get there, and now it’s pulled back.

Even though the price of Bitcoin recently dropped a bit, it’s still staying above its 50-day moving average of around $75,500. The Supertrend indicator is also showing a positive outlook at that same level, which suggests the overall upward trend is likely continuing for now.

The 50-day simple moving average is getting closer to crossing above the 200-day simple moving average around $81,400. This pattern, known as a golden cross, is often seen as a positive sign by traders.

Bitcoin’s recent price drop has slowed its upward trend, and it’s currently having trouble getting back above $80,000.

If buyers can drive the price of Bitcoin back above $80,000, it could quickly try to reach the $81,400 to $84,000 range, where it has faced selling pressure in the past.

If Bitcoin drops below its current support level, it could fall further, potentially reaching between $75,500 and $73,900. This area is a key support zone, marked by the 50-day Simple Moving Average and the Supertrend indicator.

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2026-05-18 11:22