Bitcoin dropped to its lowest level in more than two weeks, falling as much as 2.28% to $76,551 on Monday before paring some losses. According to The Hindu BusinessLine, the cryptocurrency weakened amid broad macro risks stemming from US-Iran war tensions, with the original cryptocurrency hitting its lowest since May 1. Other tokens including Ether and Solana also fell as traders cut back positions amid uncertainty around the US war with Iran. Latest data shows Bitcoin priced at $76,881 at 5:30 a.m. in New York, with the sharp correction driven by selling pressure and significant outflows from US spot Bitcoin ETFs. The latest decline was accelerated by a surge in crude oil prices above $110 per barrel and rising U.S. Treasury yields hitting 5.13% for 30-year bonds—the highest since 2007, pushing investors toward safer assets.
Cryptocurrencies across the board saw $500 million in liquidations within just 15 minutes during early Asia trading on Monday, with $590 million in losses absorbed by long position holders as leveraged traders rushed to exit positions during the latest correction. As reported by Coinglass data, roughly $590 million in bullish positions were unwound in the 24 hours leading into early European trading. Binance and OKX recorded the highest liquidation volumes, with retail traders using 10x to 100x leverage hit the hardest. The latest data shows this sharp correction was triggered as Bitcoin fell through a key support level around $77,800, with structural support remaining between $76,000 and $76,800. A close above $80,000 would be the first meaningful signal that selling pressure is exhausting, according to BTC Markets analyst Rachael Lucas.
The latest Bitcoin decline follows the Senate Banking Committee's progress on the CLARITY Act, which led traders to sell after an initial rally. According to The Hindu BusinessLine, US-listed spot Bitcoin exchange-traded funds saw more than $1 billion in outflows last week for the first time since late January. Oil prices climbed while bond yields surged and Asian stocks declined, with negative sentiment coming amid a lack of progress in reopening the Strait of Hormuz, a critical trade waterway. President Donald Trump said the "clock is ticking" for Iran to make a deal, adding to geopolitical tensions. Latest market data shows other major coins like Ethereum, Binance Coin, and XRP also dropped between 1.8% and 2.2%, while Dogecoin experienced a significant fall of nearly 6%, indicating broad-based selling across the cryptocurrency market.
The latest Bitcoin crash represents an unprecedented acceleration in market liquidations, with over $500 million to $600 million in leveraged positions wiped out within just one hour according to recent market reports. This dramatic escalation from the previously reported $657 million in 24-hour liquidations demonstrates the rapid deterioration of market sentiment and the vulnerability of high-leverage trading strategies. The compressed timeline from initial selloff to massive liquidation events has intensified fear across the crypto market, with traders now questioning whether this represents a healthy correction, panic sell-off, or the beginning of a larger market move. Bitcoin price action remains under significant pressure as all eyes focus on the next support levels and potential buying opportunities.
Despite the volatility, on-chain data shows long-term investors are accumulating Bitcoin, holding a record 15.26 million BTC, signaling a strategic buy during the dip. This contrasting behavior between short-term selling and long-term buying could influence the crypto market's recovery and stability in the coming weeks. Bearish bets were concentrated at $77,500 with traders buying about $38 million in Bitcoin put options for May 18 expiry, underscoring negative sentiment. As FalconX derivatives trading lead Sean McNulty noted, the sudden fall "appears to have triggered a stop run in the absence of any macro headlines," with weakness compounded by lingering downside hedging from last week. Recent buyers face losses in this environment, increasing market fragility as upcoming events like Nvidia's earnings and U.S. inflation data could further influence market direction.
