Bitcoin’s price fell below $73,000 on May 28, hitting roughly $72,700—its lowest level since mid‑April—as a storm of macro and institutional pressures overwhelmed a pro-crypto statement from former U.S. President Donald Trump. The selloff erased more than $80 billion from the total crypto market capitalization and triggered the most severe liquidation event in weeks.
The downturn accelerated after BTC lost support around $76,000 and then $75,000, with sellers seizing control amid a rapid shift in risk appetite. Fresh U.S. airstrikes on an Iranian military site and Iran’s subsequent strike on a U.S. base in Kuwait drove oil prices up roughly 5%, reigniting inflation fears just as strong American economic data had already delayed expectations for Federal Reserve rate cuts. The combination pushed investors out of risk assets, and Bitcoin—often touted as a hedge—moved in lockstep with equities.
Institutional flows amplified the pressure. U.S. spot Bitcoin ETFs posted approximately $333 million in net outflows on May 27 alone, with BlackRock’s IBIT responsible for more than $527 million of that total. Over a three‑day window, outflows swelled to around $1.02 billion, and a $1.3 billion dark‑pool block trade tied to IBIT earlier in the week added to the unease. Leveraged traders were wiped out en masse: about 165,000 positions were liquidated within 24 hours, with total liquidations near $937 million—roughly 93% of which were long bets. The forced selling cascaded through the market, illustrating how over‑leveraged the bullish side had become.
Amid the turmoil, Trump released a statement directly attacking SEC Chair Gary Gensler and what he labeled the “Anti Crypto Army,” claiming their policies nearly drove crypto innovation offshore. He vowed to “NEVER let Crypto down” and promised a “future‑proof digital asset market structure” that could not be easily reversed. The message was intended to cement his role as crypto’s political defender, but the immediate market reaction ignored the rhetoric. Ethereum joined the slide, falling below $2,000 to around $1,975, while the total crypto market sank to a six‑week low.
The confluence of geopolitical escalation, sticky inflation expectations, and historic ETF outflows left little room for policy optimism to stabilize prices. Analysts now warn that if Bitcoin cannot reclaim the $75,000–$76,000 support zone, further downside toward $70,000 or below is possible, especially if outflows and forced deleveraging persist.
