Key Highlights
- BTC fell to $74,250 on Saturday, marking its lowest level in five weeks, before recovering to approximately $76,800.
- President Trump announced on Truth Social that a US-Iran peace agreement was “largely negotiated,” triggering a temporary market surge.
- The president subsequently retracted his statement, clarifying the deal was not “even fully negotiated yet.”
- Bitcoin ETFs experienced $1.257 billion in net withdrawals during the week ending May 22.
- Market analyst Ted Pillows indicates BTC must break above $77,500–$78,000 to push toward $80,000.
Bitcoin experienced a significant decline over the weekend, plunging to $74,250 on Saturday—its weakest level in more than a month—before staging a partial recovery. As of Sunday afternoon, the leading cryptocurrency traded near $76,697, struggling to maintain momentum.
The sell-off occurred as digital asset markets faced mounting pressure from various fronts, including institutional withdrawals from exchange-traded funds, climbing international bond yields, and ongoing geopolitical tensions involving the United States and Iran.
President Trump triggered a brief market rally on Saturday when he posted to Truth Social claiming a peace agreement between the United States, Iran, and multiple Middle Eastern countries had been “largely negotiated.” The declaration injected approximately $75 billion into the total cryptocurrency market capitalization, lifting Bitcoin sharply from its session lows.
However, the optimism proved fleeting. The following day, Trump contradicted his earlier statement, revealing he had instructed US negotiators “not to rush into a deal” and acknowledging the agreement had not “even been fully negotiated yet.”
The whiplash from the conflicting statements prevented Bitcoin from sustaining its recovery. By Sunday afternoon, BTC had retreated after briefly testing its 50-day exponential moving average near $77,000.
Institutional Withdrawals Suppress Rally Attempts
Among the most significant pressures facing Bitcoin this week was the persistent outflow from cryptocurrency exchange-traded products. Data compiled by Wu Blockchain reveals spot Bitcoin ETFs registered net withdrawals totaling $1.257 billion during the May 18–22 period. Ethereum ETFs similarly experienced $216 million in net outflows.
Not all digital assets faced institutional selling. Spot XRP ETFs attracted $22.04 million in net inflows, while HYPE ETFs garnered $72.38 million. Solana ETFs recorded $15.63 million in positive flows.
The substantial Bitcoin ETF withdrawals underscore persistent institutional hesitancy despite temporary geopolitical catalysts.
Critical Resistance Zones Ahead
Cryptocurrency analyst Ted Pillows identified the $77,500–$78,000 range as the crucial resistance level Bitcoin must recapture to advance toward $80,000. “Should Bitcoin fail to maintain support above $78,000, expect another sweep of the $75,000 zone,” Pillows warned.
Bitcoin has trended downward since encountering strong resistance at $82,000. The cryptocurrency currently trades 39% below its October record high.
Compounding the pressure, a worldwide bond market selloff has elevated interest rate expectations across numerous central banks. Historically, higher interest rate environments have negatively impacted risk-oriented assets, including cryptocurrencies.
A May 14 legislative advancement in the US Senate had temporarily fueled optimism, but markets have since surrendered those gains.
The Strait of Hormuz—a critical petroleum shipping corridor whose potential closure has elevated global energy costs—remains a contentious issue referenced in both the proposed agreement and Trump’s subsequent walkback.
As of Sunday, Bitcoin continues trading beneath the pivotal $78,000 threshold while investors monitor ETF activity and Federal Reserve policy developments closely.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
