Bitcoin fell to its lowest level since early May as the Iran war triggered a sharp repricing of risk across global markets, hitting cryptocurrencies alongside equities and other speculative assets.
The world’s largest cryptocurrency dropped to around $76,500 during Asian trading, its weakest level since May 1, before recovering modestly toward the $77,000 range. Ether, Solana and other major tokens also declined as investors reduced exposure to digital assets amid a broader flight from risk.
The selloff accelerated after heavily leveraged bullish positions were unwound across crypto markets. Coinglass data cited by market reports showed that nearly $500 million in long crypto positions were liquidated within about 15 minutes, while total liquidations over 24 hours ranged between roughly $590 million and more than $660 million across reports.
The pressure on Bitcoin reflected a broader macro shift as the Iran conflict pushed up oil prices, lifted bond yields and weakened equity futures. Tensions around the Strait of Hormuz — a critical energy and trade corridor — have intensified investor concern over inflation, shipping costs and global liquidity conditions.
Institutional flows also turned negative. U.S.-listed spot Bitcoin exchange-traded funds recorded more than $1 billion in outflows last week, marking the first weekly withdrawal of that scale since late January, according to market reports.
At the same time, corporate accumulation continued. Strategy, formerly MicroStrategy, purchased 24,869 Bitcoin for about $2.01 billion during the week ending May 17, at an average price of nearly $80,985 per coin. The purchase lifted the company’s total holdings to 843,738 Bitcoin, acquired for about $63.9 billion at an average purchase price of around $75,700.
The contrast between ETF outflows and Strategy’s large purchase highlights a divided institutional landscape: some investors are cutting exposure as geopolitical risks intensify, while long-term corporate buyers continue to treat Bitcoin as a strategic reserve asset.
Technically, Bitcoin’s fall below the $77,800 support area helped trigger stop-loss selling and deeper liquidation pressure. Traders were closely watching the $76,000–$76,800 zone as the next major support range, while a move back above $80,000 would be viewed by some market participants as an early sign that selling pressure is easing.
The latest decline underscores a growing paradox in digital-asset markets. Although Bitcoin is often presented as a hedge against systemic instability, periods of acute geopolitical stress continue to push many investors toward liquidity, government bonds, gold and other traditional safe havens rather than cryptocurrencies. For now, Bitcoin is trading less like an insulated alternative asset and more like a highly liquid, macro-sensitive risk instrument.
