Bitcoin’s price has fallen sharply this week, dropping over 6% in the last seven days and almost 10% in two weeks, according to CoinMarketCap data. Several things have caused this decline, including large amounts of money leaving Bitcoin ETFs, the conflict between the US and Iran, and increased selling by large investors and institutions.
Bitcoin Price Crashes Amid ETF Outflows And Rising Selling Pressure
The cryptocurrency market is experiencing significant ups and downs, with new issues putting a lot of pressure on Bitcoin and other digital currencies. Crypto analyst Nic reported on X that Bitcoin recently fell below $75,000 and is now hovering around the $73,000 level, which is seen as a key price floor.
Bitcoin reached a peak of $83,000 in early May, but then faced strong resistance and couldn’t hold that level. Since then, the price has been gradually falling. However, the past week has seen a much steeper and faster decline than we’ve seen previously.
The recent sharp drop in price can be attributed to a few things, most notably decreasing demand for Bitcoin ETFs. Institutional investors haven’t shown much interest in these products, and data from SoSoValue indicates that Bitcoin ETFs have experienced eight straight days of net outflows – meaning more Bitcoin is leaving these funds than entering them.
Bitcoin ETFs have experienced consistent withdrawals since mid-May, as institutions try to limit losses by selling their holdings. The largest single-day outflow this month occurred on May 27th, totaling $733.43 million, primarily driven by sales from BlackRock’s IBIT ETF. Before this recent trend, Bitcoin ETFs only saw inflows on six days, indicating a strong shift towards sellers controlling the market.
Swissblock, a financial research company, has also pointed out the recent negative trends and potential for further losses in the market. They’ve observed that their Bitcoin Risk Index indicates strong selling pressure is currently dominating the market.
Due to recent market activity, the firm now believes Bitcoin has shifted back into a phase where sellers outweigh buyers, following a period of strong buying and price increases in March and April. They attribute this change to the absence of support from exchange-traded funds (ETFs) and concerning signals from their risk assessment tools, indicating that Bitcoin’s price could fall more quickly.
US-Iran Fresh Strikes Add More Pressure To Fragile Market
Bitcoin’s price has fallen recently due to a combination of factors, including increased selling, money leaving Bitcoin ETFs, and new military actions between the US and Iran. According to Nic, fighting that resumed despite a ceasefire caused widespread selling in the market, further driving down the price of Bitcoin.
Recent reports from CNN show that Iran’s Revolutionary Guard recently attacked a U.S. air base. In response, the U.S. military hit Iranian drones and a key launch location close to the Strait of Hormuz.
With fighting starting up again, the planned peace agreement is now in doubt. The market is hoping for good news, but investors are selling off riskier investments to protect themselves from potential losses.
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2026-05-29 01:11