TLDR
- BTC retreated from $80,000 to under $77,000, touching a monthly bottom at $76,020
- Coinbase premium indicator declined to -0.0983%, marking the month’s weakest reading and indicating institutional exits
- Spot Bitcoin ETFs experienced outflows totaling $1.3 billion across four straight sessions
- More than 104,013 positions were liquidated within a 24-hour period, amounting to $257.67 million
- Rising tensions between Iran and the US contributed to increased market volatility
Bitcoin has experienced approximately 4.5% depreciation throughout the past seven days, declining from levels above $80,000 to reach a monthly floor just above $76,000. Currently, BTC trades around $77,621, representing a 38% decline from its October all-time peak.
This downward movement coincided with significant forced liquidations across the market. Data from CoinGlass indicates that approximately 104,013 trading positions were liquidated during a 24-hour window, generating total losses of $257.67 million. The largest individual Bitcoin liquidation occurred on Binance, totaling $3.04 million.
The broader cryptocurrency market mirrored this weakness, with Ethereum sliding beneath the $2,300 threshold and XRP falling below $1.40, demonstrating widespread selling pressure.
Professional Investors Accelerate Sales
The Coinbase premium indicator, which tracks institutional activity, registered its lowest monthly reading at -0.0983% on May 21. This metric calculates the price variance between Coinbase, predominantly utilized by American institutional players, and Binance, which attracts primarily retail participants.
According to CryptoQuant analyst Darkfost, institutional selling momentum “has intensified recently,” with professional market participants on Coinbase “selling more aggressively than investors trading on Binance.” He noted that macroeconomic uncertainty seems to be “pushing institutions toward hedging strategies while waiting for greater clarity.”
LVRG research director Nick Ruck indicated the downturn could signal “net selling pressure from larger holders,” implying institutional participants are either securing gains or adjusting portfolio allocations.
Market analyst Axel Adler characterized the information as demonstrating “zero confirmation from US spot demand.”
US-based spot Bitcoin exchange-traded funds have witnessed four consecutive trading days of capital withdrawals amounting to $1.3 billion beginning May 14. Similarly, Ethereum spot ETFs recorded their eighth consecutive day of negative flows, with $28.14 million departing on May 20 alone.
Price Levels and Global Tensions
Market analyst Ted Pillows observed that despite BTC pushing above $78,000, “spot demand isn’t strong at all.” He projected Bitcoin might advance toward the $79,500–$80,000 range as short-sellers close their positions, though cautioned the bearish trend could persist without stronger spot market participation.
Blockchain analytics presented by analyst Ali Charts revealed that 9,664 BTC, valued at more than $744 million, were transferred to cryptocurrency exchanges throughout a five-day period — typically interpreted as preparation for selling activity.
Escalating geopolitical friction between Iran and the United States further dampened market sentiment. Crude oil prices jumped more than 4% following reports that Iran’s supreme leader refused proposals to transfer enriched uranium outside Iranian borders. This development prompted investors to reduce exposure to higher-risk investment vehicles.
Bitcoin currently maintains a position above $77,200 with immediate resistance positioned at $78,000. Critical support rests at $76,200, while the subsequent significant level lies at $74,200.
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