Bitcoin was experiencing one of its biggest dropoffs in weeks after tensions in the Middle East led to a broad risk-off tone across global markets. The world’s largest crypto was down 3.44% over 24 hours, trading around $72,909 on Thursday and breaking the psychologically crucial $73,000 support level for the first time in over five weeks, as news of additional US military airstrikes on Iran coupled with growing uncertainty surrounding the Strait of Hormuz – one of the world’s most crucial oil transport paths – weighed on sentiment. Worries are circulating of about prolonged war, leading to oil spikes and an acceleration of inflation, leading investors away from more volatile, riskier assets such as Bitcoin. Investment funds appeared to have withdrawn from bitcoin products that were under downward price pressure.
Concurrently, investment funds appeared to have withdrawn from the products of bitcoin and put on downward pressure.
Bitcoin price in the last 10 days
| Date | Open | High | Low | Close | Volume | Market Cap |
|---|---|---|---|---|---|---|
| May 27, 2026 | $75,825.30 | $76,014.30 | $74,136.50 | $74,344.70 | $33,802,172,927 | $1,489,419,525,328 |
| May 26, 2026 | $77,280.13 | $77,990.87 | $75,569.47 | $75,825.73 | $35,999,475,458 | $1,519,154,446,682 |
| May 25, 2026 | $76,981.13 | $77,804.92 | $76,833.04 | $77,279.93 | $19,808,387,601 | $1,548,267,009,574 |
| May 24, 2026 | $76,670.66 | $77,372.54 | $76,019.89 | $76,981.13 | $20,572,738,918 | $1,542,235,488,503 |
| May 23, 2026 | $75,488.31 | $77,288.12 | $74,255.23 | $76,673.37 | $29,973,220,002 | $1,535,984,902,704 |
| May 22, 2026 | $77,538.11 | $77,819.45 | $75,323.88 | $75,488.24 | $27,859,040,109 | $1,512,261,064,568 |
| May 21, 2026 | $77,462.51 | $78,100.56 | $76,655.44 | $77,539.17 | $27,141,485,404 | $1,553,287,066,453 |
| May 20, 2026 | $76,749.45 | $77,775.57 | $76,463.65 | $77,457.77 | $26,668,360,936 | $1,551,741,518,629 |
| May 19, 2026 | $76,954.75 | $77,346.87 | $76,082.37 | $76,750.90 | $26,031,898,332 | $1,537,421,234,223 |
| May 18, 2026 | $77,426.34 | $77,749.32 | $76,029.22 | $76,954.18 | $41,520,471,808 | $1,541,500,358,226 |
(Figures source: CoinMarketCap)
So, why is Bitcoin crashing today?
Middle East tensions spark risk-off sentiment
The latest sell-off was sparked by reports of renewed US military action in the Middle East and comments from US President Donald Trump denying any immediate deal to restore traffic through the Strait of Hormuz.
That immediately sent crude oil prices higher and fears of another inflation spike worldwide. Situations like those usually scare investors away from volatile assets like crypto and draw money into other areas. Bitcoin struggled to maintain over $75k before losing momentum amid the panic:
Sentiment Hit Hard by Large ETF Outflows
Beyond geopolitical concerns, institutional selling pressure also exerted a significant downward pull on Bitcoin prices.
According to market reports, BlackRock’s Bitcoin ETF sold nearly $527.8 million in BTC, and US spot Bitcoin exchange-traded funds (ETFs) saw more than $2 billion in outflows over the last two weeks.
The sudden withdrawal of institutional money hurt market confidence and increased selling pressure.
Almost $1 Billion in Crypto Liquidations
Bitcoin’s price plunge set off a brutal round of leveraged crypto trading liquidations.
Data showed that almost $298 million worth of Bitcoin positions were liquidated in 24 hours, with bullish long traders suffering losses of more than $283 million. Meanwhile, total liquidations in the wider crypto market were close to $1 billion.
This is particularly important, as it explains the rapid price fluctuations within leveraged positions. Once the market starts to go down very sharply, exchanges will have to sell at any price by closing short positions that carry high risk. This increases forced selling and causes even more market sell-offs. In a nutshell, what started as a geopolitical adjustment turned into a liquidity-fuelled free fall.
Can BTC defend $74k?
Bitcoin’s near-term structure has turned weak after the cryptocurrency broke below its ascending trading channel, technical indicators suggest.
The $74,136-$74,528 support zone is now being closely watched by analysts.
A successful reclaim and hold above this area could trigger a short-term consolidation in the market. But analysts caution that prices could drift towards the $68,900 region if selling pressure persists and BTC fails to defend support.
The good news is that the 200-day Simple Moving Average near $80,128 has now turned into a major resistance zone.
What would improve sentiment?
For any substantial improvement in market sentiment, traders will likely look for:
Stabilisation in ETF flows
Easing geopolitical tensions in the Middle East
Lower volumes of liquidation
Bitcoin reclaims the $76,000 level
Improvement of any of these aspects will likely relieve near-term bearish pressure.
Is another crypto crash coming soon?
The latest plunge in Bitcoin is a testament to how sensitive the market remains to global macro events, as growing tensions geopolitically, strong ETF outflows and intense liquidation from leverage together formed a strongly bearish atmosphere.
The next 48 hours will be critical for the market. As Bitcoin attempts to hold the $74,000 range, traders may soon see some stabilisation of the price, but the breakdown of this level would be cause to prepare for another wave of downside volatility.
(Disclaimer: This article is for informational purposes only and should not be considered investment advice. The views, opinions, and recommendations expressed herein are those of the respective experts. Readers are advised to consult a qualified financial advisor before making any investment decisions.)
Priyanka Roshan is a business writer and assistant editor at the NewsX website who tracks everything from stock market swings and corporate earnings to personal finance trends and policy shifts. Known for turning fast-moving business developments into sharp, reader-friendly stories, she combines speed, accuracy, and a data-driven approach to break down complex financial news for everyday audiences.
With over 9.5 years of newsroom experience, Priyanka has worked with leading media organisations, including Moneycontrol, Times Now, and Ping Digital, covering diverse beats such as business, politics, technology, auto, travel, sports, and the world. From live breaking news desks to SEO-led digital storytelling, she specialises in creating engaging content that keeps readers informed without overwhelming them.
