Odaily Planet Daily reports that Bitcoin has fallen below the $77,000 mark, touching a low of approximately $76,720. Analysts attribute the market decline to multiple macroeconomic pressures, including renewed tensions between the U.S. and Iran, rising inflation concerns, and increased risk-off sentiment across risk assets. Former U.S. President Trump issued a stern warning against Iran on social media, exacerbating geopolitical uncertainty.
Meanwhile, the rise in crude oil prices has further increased inflation expectations, with Brent crude rising to around $111 and WTI surpassing $107, sparking concerns in the market that the Federal Reserve may keep interest rates high for longer.
Current selling pressure is compounded by rising U.S. Treasury yields, a stronger dollar, and outflows from ETFs. Data shows that Bitcoin ETFs experienced net outflows of approximately $1 billion for the week ending May 17, ending six consecutive weeks of net inflows.
In terms of market sentiment, the Bitcoin Fear & Greed Index has dropped to 27, re-entering the "fear" zone. Analysts believe short-term price movements will remain highly dependent on macroeconomic data and policy expectations, but some institutions view the current pullback as more of a "healthy consolidation," with the long-term structure unchanged. (The Block)