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Bitcoin News
Bitcoin (BTC) fell below $77,000 on Sunday night as renewed geopolitical tensions and mounting concerns over persistent inflation drove broad risk aversion across markets.
BTC dropped 1.2% in the 24 hours to $76,593 on Sunday, after briefly touching a low of around $76,720 earlier in the day. The decline came just days after Bitcoin had climbed to around $82,000, lifted by strong ETF inflows and optimism around the CLARITY Act.
Andri Fauzan Adziima, research lead at Bitrue Research Institute, cited surging Treasury yields at 12-month highs, a stronger dollar, and escalating geopolitical tensions as the key drivers of the move.
Geopolitical tensions in the Middle East intensified over the weekend following public statements warning of potential military consequences if diplomatic progress stalled. Following those developments, Brent crude oil rose 1.78% to $111.2, and WTI crude climbed 2.2% to $107.7.
BTSE COO Jeff Mei said traders are concerned that elevated oil prices will sustain inflation, increasing the probability that the Federal Reserve will raise interest rates. Oil-driven inflation has already triggered a notable sell-off in government bonds, CNBC reported on Saturday.
Bitcoin ETF flows reflected the deteriorating sentiment. According to SoSoValue data, Bitcoin ETFs recorded a net weekly outflow of $1 billion in the week ending May 17, breaking a six-week streak of inflows. Min Jung, associate researcher at Presto Research, said the outflows likely reflect institutional investors trimming short-term exposure as expectations for Fed rate cuts continue to be pushed back, with portfolio managers rotating toward cash or defensive positions.
Jung added that BTC will likely remain closely correlated with broader macro markets in the coming week, with US inflation data and Treasury yield movements as the primary watchpoints. Progress on the CLARITY Act could provide a sentiment boost. Adziima described the current dip as "healthy digestion" within a broader uptrend and identified $74,000 as the key downside support level. Zeus Research Analyst Dominick John said traders should expect "range-bound, headline-sensitive trading, with sharper directional moves only when one macro signal breaks consensus."
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