Bitcoin briefly dropped below $75,000 on May 23, dragging the broader crypto market lower. The total market capitalization fell to approximately $2.5 trillion, with major tokens such as ETH, XRP, SOL, ADA, and DOGE also declining in tandem, signaling a clear weakening in risk appetite.
Over $500 million in positions were liquidated
During this downturn, leveraged trading triggered a cascade of liquidations, amplifying the sell-off. Reports cited data showing that over $500 million in crypto leveraged positions were liquidated in a short period. Bitcoin also plunged nearly $1,000 within 10 minutes, rapidly intensifying market volatility.
As prices rapidly declined, traders holding highly leveraged long positions were forced to liquidate, further increasing selling pressure. The report also stated that Bitcoin’s market capitalization lost approximately $55 billion during this pullback.
Spot ETFs have experienced six consecutive days of net outflows.
Institutional funding conditions have also not improved. According to SoSoValue data, U.S. spot Bitcoin ETFs recorded a net outflow of approximately $105 million on May 22, marking six consecutive trading days of capital withdrawals, with a total outflow of about $1.26 billion over the six days.
At the same time, spot Ethereum ETFs continued to experience outflows. Persistent redemptions have weakened expectations of institutional buying, further pressuring an already weak sentiment.
- Bitcoin ETFs experienced a net outflow of approximately $105 million in a single day.
- Recorded net outflows for six consecutive trading days
- Over six days, approximately $1.26 billion has flowed out.
Geopolitical news disrupts risk appetite
In addition to factors within the crypto market itself, geopolitical developments also served as an external source of pressure that day. The report noted rising tensions between Iran and the United States, along with market attention surrounding developments related to the Strait of Hormuz.
The Strait of Hormuz is a critical global energy transit route; any policy or通行 changes involving this region affect how global financial markets price risk assets. As a result, risk-off sentiment has risen simultaneously in both traditional and crypto markets.
Watch the $74,000 level for short-term movement.
As of press time, Bitcoin has slightly recovered from its low to around $75,400, but the overall trend remains weak. The report suggests that if selling pressure continues, the price may test the $74,000 support level; if this level is breached, the next target could be the $72,500 area.
Relatively speaking, if Bitcoin regains the $76,000 level, short-term sentiment may ease, opening the door for further upside toward $77,000.