Bitcoin fell below the critical $73,000 level for the first time in months, driven by renewed military confrontations between the United States and Iran and a mass exodus from spot Bitcoin ETFs. The cryptocurrency was trading at $73,295 at the time of reporting, down 3.43% over 24 hours, according to CoinMarketCap. Its market capitalization dropped by a corresponding percentage, as over $900 million in long positions were liquidated across derivatives exchanges after BTC lost its $75,000 support.
The sell-off capped a brutal week in which Bitcoin declined over 6% and nearly 10% over two weeks, following a failed rally to $83,000 earlier in May. Spot Bitcoin ETFs in the U.S. recorded their eighth consecutive day of net outflows, with $733.43 million withdrawn on May 27 alone — the highest single-day outflow this month. BlackRock’s IBIT led the exodus. Since May 15, these funds have seen only outflows, indicating that institutional investors are aggressively reducing risk exposure.
Swissblock, a financial research firm, noted that Bitcoin’s Risk Index has flipped into distribution territory after a period of strong accumulation in March and April. Their analysis shows that selling pressure is overwhelming the market, and the lack of ETF support is accelerating the downside risk. Additionally, fresh airstrikes — with Iran’s Islamic Revolutionary Guard Corps targeting an American air base and the U.S. striking Iranian drone and launch sites near the Strait of Hormuz — have dashed hopes for a peace deal, further stressing risk assets like cryptocurrencies.
