TLDR
- Bitcoin slipped beneath the $76,000 mark on Friday, declining approximately 2.3% to $75,933 and marking its second consecutive week in the red
- The cryptocurrency market experienced $200 million in liquidations within a 24-hour window, fueled by growing expectations of interest rate increases linked to oil-induced inflation
- Spot Bitcoin ETFs recorded $1.26 billion in net withdrawals across five consecutive trading days
- Analytics platform Santiment characterizes these withdrawals as a “counter-indicator” that could present an accumulation opportunity
- Bloomberg ETF analyst James Seyffart notes total ETF inflows are approaching their all-time peak of $60 billion, with expectations to surpass that milestone
On Friday, May 22, Bitcoin (BTC) slipped beneath the $76,000 threshold, continuing a downturn that has pushed the leading digital asset into its second straight week of negative performance. The cryptocurrency was changing hands at $75,933, representing a 2.3% decline for the day and approximately 3% for the week.
The pullback stemmed from a convergence of macroeconomic headwinds and the unwinding of leveraged positions. According to CoinGlass metrics, the cryptocurrency sector witnessed $200 million in forced liquidations within a 24-hour timeframe.
Market participants increased their expectations for interest rate hikes throughout the week as crude oil values climbed due to persistent tensions in the Middle East. Since late February, Iran has effectively blocked the Strait of Hormuz, disrupting a critical shipping route that handles approximately one-fifth of global oil and gas transportation.
BREAKING: A source close to Iran’s Ghalibaf says Iran’s “third struggle” plan announced by the IRGC will close Bab el-Mandeb Strait “by fire” and disable the seven submarine internet cables under the Strait of Hormuz, in immediate response to upcoming US strikes that Iran has…
— The Hormuz Letter (@HormuzLetter) May 23, 2026
This supply disruption has amplified concerns about rising inflation. The Federal Reserve’s April meeting minutes revealed that a majority of policymakers are now considering rate increases if energy-related inflation persists.
On Friday, Kevin Warsh was officially sworn in as the new Federal Reserve chair, assuming leadership during a challenging economic period. While President Trump has advocated for rate reductions, the prevailing inflationary climate makes monetary easing appear improbable.
Nexo Dispatch analyst Dessislava Ianeva observed that cross-asset dynamics underwent a significant transformation midweek. “U.S.–Iran de-escalation headlines pulled Brent from above $110 to $105.7 a barrel, while hawkish April FOMC minutes pinned long-end yields near cycle highs,” she commented.
Cryptocurrency trader Daan Crypto Trades (@DaanCrypto) shared on X that BTC maintains a defined trajectory on the technical charts. He indicated Bitcoin must breach the low $80K region, where both horizontal resistance and the daily 200-day moving average converge. He characterized this as the first significant correction since Bitcoin’s April surge, noting that bulls must establish a higher low or risk validating a lower high within the broader downtrend that has persisted since the October 2025 record peak.
$BTC It is still pretty straight forward from here looking at the chart.
Bitcoin needs to clear that low $80Ks region with the horizontal and Daily 200MA/EMA sitting right around the same region.
This is the first “bigger sell off” this leg up after the April move higher.… pic.twitter.com/01yL1CqatF
— Daan Crypto Trades (@DaanCrypto) May 22, 2026
ETF Withdrawals Exceed $1.26 Billion
Spot Bitcoin ETFs documented withdrawals spanning six consecutive trading sessions. The 11 United States-based funds collectively shed $1.26 billion in net outflows during the past five days alone, based on Farside data.
According to SoSoValue data, on May 22 (ET), U.S. spot Bitcoin ETFs recorded a total net outflow of $105 million, marking the sixth consecutive day of outflows. Spot Ethereum ETFs saw a total net outflow of $6.67 million, extending their outflow streak to 10 days. pic.twitter.com/lX95yAUmuC
— Wu Blockchain (@WuBlockchain) May 23, 2026
Bitcoin struggled to maintain levels above $80,000 throughout May, reaching a peak of $79,052 on May 16 before retreating. At the time of Santiment’s Friday report, it was trading at $75,410.
Santiment Identifies Buy Signal
Cryptocurrency sentiment analytics firm Santiment challenged the bearish interpretation of these outflows. The company indicated that ETF flows predominantly mirror retail investor sentiment rather than institutional activity.
“Sustained ETF outflows have historically correlated with conditions favorable for patient accumulation rather than panic,” Santiment stated.
ETF analyst James Seyffart mentioned during a YouTube podcast that Bitcoin ETFs have recovered the majority of the $9 billion in withdrawals observed between October and February. Current total inflows are positioned near $60 billion since inception, approaching the all-time record. Seyffart expressed confidence that this benchmark will be surpassed, particularly as additional ETF offerings enter the marketplace.
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