Key Highlights
- BTC plunged from $80,000 to $76,020, marking the lowest price point of the month
- Coinbase premium indicator reached -0.0983%, the weakest reading in May, indicating heavy institutional sales
- Spot Bitcoin ETFs experienced $1.3 billion in net withdrawals across four trading sessions
- Over 104,000 positions were forcibly closed within one day, representing $257.67 million in losses
- Rising geopolitical risks from Iran-US tensions contributed to risk-off sentiment
Bitcoin has experienced a sharp 4.5% decline over the last seven days, retreating from levels above $80,000 to touch a monthly floor near $76,000. Currently, BTC is changing hands around $77,621, representing a 38% pullback from its October all-time peak.
The price deterioration has been accompanied by massive forced liquidations. Data from CoinGlass indicates approximately 104,013 positions were liquidated during a 24-hour period, accumulating losses of $257.67 million. The largest individual Bitcoin liquidation occurred on Binance, totaling $3.04 million.
The selling pressure extended beyond Bitcoin, with Ethereum breaking below the $2,300 threshold and XRP dropping beneath $1.40, demonstrating widespread market weakness.
Professional Investors Leading the Selloff
The Coinbase premium indicator, which tracks institutional trading behavior, plummeted to -0.0983% on May 21—the lowest reading recorded this month. This metric calculates the price differential between Coinbase, the platform favored by American institutional players, and Binance, which attracts predominantly 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 suggested the downward movement may indicate “net selling pressure from larger holders,” implying institutional players are either securing profits or adjusting their portfolios.
Market analyst Axel Adler characterized the situation as demonstrating “zero confirmation from US spot demand.”
US-based spot Bitcoin ETFs have witnessed four consecutive trading days of capital outflows totaling $1.3 billion beginning May 14. Similarly, Ethereum spot ETFs have posted eight successive days of net redemptions, with $28.14 million leaving on May 20 alone.
Chart Analysis and External Market Factors
Market analyst Ted Pillows observed that despite BTC pushing past $78,000, “spot demand isn’t strong at all.” He projected Bitcoin might attempt a recovery toward the $79,500–$80,000 range as bearish positions unwind, but cautioned the broader downtrend could persist without stronger spot buying interest.
Blockchain analytics shared by analyst Ali Charts revealed that 9,664 BTC, valued at approximately $744 million, were transferred to cryptocurrency exchanges during a five-day window—a pattern typically interpreted as preparation for liquidation.
Escalating geopolitical friction between Iran and the United States has further dampened market sentiment. Oil prices jumped more than 4% following reports that Iran’s supreme leader rebuffed proposals to relocate enriched uranium outside the nation. The development prompted investors to retreat from higher-risk asset classes.
Bitcoin is presently trading sideways above $77,200, encountering resistance around $78,000. Critical support remains at $76,200, while the subsequent significant level stands at $74,200.
