Bitcoin fell below the $77,000 level over the weekend due to strong selling pressure, unsettling investors. Analysts attribute the decline to renewed escalation of US-Iran tensions, rising inflation concerns, and increasing bond yields.
According to market data, Bitcoin has fallen 1.2% in the last 24 hours, dropping to $76,707. The leading cryptocurrency, which hit a low of $76,720 during the day, had recently risen to $82,000 driven by strong inflows into spot Bitcoin ETFs and optimism surrounding the CLARITY Act bill regarding cryptocurrency regulation in the US. However, recent developments have significantly weakened risk appetite in the markets.
The sell-off was triggered by harsh statements from US President Donald Trump against Iran. Trump threatened military intervention if the peace talks continued to be delayed. Following these statements, energy markets saw a sharp rise. Brent crude rose 1.78% to $111.2, while WTI crude increased 2.2% to $107.7.
Concerns that rising oil prices could reignite inflation and prompt the US Federal Reserve to consider raising interest rates have driven investors towards safe havens. The surge in US Treasury yields to their highest levels in 12 months has also increased pressure on risky assets.
Institutional investors also appear to be acting cautiously. According to SoSoValue data, there was a net outflow of $1 billion from spot Bitcoin ETFs in the week ending May 17, ending a six-week streak of strong inflows.
Analysts say Bitcoin could test the $74,000 support level in the short term, but a rebound is likely if macroeconomic pressures ease. The market is expected to focus on US inflation data and statements from the Fed in the coming days.
*This is not investment advice.
