New Delhi, May 18 (IANS): Bitcoin dropped to its weakest level in May on Monday, sliding to $76,711 before recovering slightly to $76,985.11 by 2:25 pm, as escalating tensions between the US and Iran rattled global markets. The decline triggered nearly $500 million in liquidations of long positions within minutes during early Asian trading, while major cryptocurrencies such as Ether and Solana also traded lower. US-listed spot Bitcoin ETFs saw over $1 billion in outflows last week, marking the first such occurrence since January. Rising oil prices and bond yields added to the pressure, pushing Asian equities lower as investors fled riskier assets. Crude prices surged nearly 3% amid uncertainty over reopening the Strait of Hormuz, with President Donald Trump warning that “the clock is ticking” for Iran to reach an agreement, further weighing on sentiment for speculative assets.
Analysts noted that Brent crude rose 2.37% to $111.86 per barrel following drone strikes in the UAE and Saudi Arabia, intensifying concerns over energy supply disruptions. Market participants said Bitcoin faces immediate resistance at $77,000, with strong support between $75,000 and $73,000, while institutional interest in digital assets remains intact despite short-term pressure from ETF outflows and geopolitical uncertainty. Experts urged investors to avoid chasing sudden rallies, instead focusing on portfolio allocation and liquidity management, with preference for fundamentally strong assets. Asian equity markets reflected the broader risk-off mood, with Japan’s Nikkei and Hong Kong’s Hang Seng both falling over 1%, while South Korea’s KOSPI bucked the trend with a nearly 1% gain, underscoring the uneven impact of global tensions on regional markets.