Key Takeaways
- BTC plunged to a five-week bottom at $74,250 Saturday before rebounding toward $76,800.
- President Trump announced on Truth Social that a US-Iran agreement had been “largely negotiated,” triggering a market rally.
- The former president subsequently reversed course, clarifying the deal wasn’t “even fully negotiated yet.”
- Bitcoin ETFs experienced $1.257 billion in net withdrawals during the May 18–22 trading week.
- Market observer Ted Pillows notes BTC must recapture the $77,500–$78,000 range to push toward $80,000.
Bitcoin experienced its steepest decline in over a month during weekend trading, bottoming at $74,250 on Saturday before staging a modest rebound. The recovery proved limited, with BTC trading near $76,697 by Sunday afternoon.
The decline occurred as digital asset markets faced mounting challenges from several fronts — persistent ETF withdrawals, climbing international bond yields, and ongoing ambiguity surrounding US-Iran diplomatic relations.
President Donald Trump announced via Truth Social on Saturday that peace negotiations involving the US, Iran, and multiple Middle Eastern countries had been “largely negotiated.” The statement catalyzed a $75 billion surge in total cryptocurrency market capitalization, propelling Bitcoin sharply higher from its session lows.
However, Trump retracted his optimistic tone within 24 hours. He clarified that he had instructed US negotiators “not to rush into a deal” and emphasized the agreement hadn’t “even been fully negotiated yet.”
The contradictory messaging prevented Bitcoin from sustaining its upward momentum. By Sunday afternoon, BTC had retreated after momentarily testing the 50-day exponential moving average near $77,000.
Institutional Withdrawals Hamper Rebound
Among the most significant obstacles to Bitcoin’s recovery this week were persistent withdrawals from cryptocurrency investment products. Data compiled by Wu Blockchain reveals spot Bitcoin ETFs experienced net outflows totaling $1.257 billion during the May 18–22 period. Ethereum-focused ETFs registered $216 million in withdrawals across the same timeframe.
Several alternative assets bucked the outflow trend. XRP-based ETFs attracted $22.04 million in net deposits, while HYPE ETFs captured $72.38 million. Solana ETFs recorded $15.63 million in positive flows.
The substantial Bitcoin ETF outflows underscore persistent institutional hesitancy despite temporary geopolitical optimism.
Critical Resistance Zones Ahead
Cryptocurrency analyst Ted Pillows identified the $77,500–$78,000 corridor as the crucial resistance Bitcoin must overcome to advance toward $80,000. “Should Bitcoin fail to maintain support above the $78,000 threshold, it will likely retest the $75,000 area,” he noted.
Bitcoin has remained in bearish territory since unsuccessful attempts to breach $82,000 resistance. The leading cryptocurrency remains 39% below its October peak.
Compounding market pressure, a worldwide bond market selloff has elevated interest rate expectations across numerous central banking institutions. Elevated rate environments have traditionally created headwinds for speculative assets including cryptocurrencies.
A US Senate legislative advancement on May 14 had briefly sparked optimism, though markets have since relinquished those advances.
The Strait of Hormuz, a critical petroleum shipping channel whose potential closure has elevated global energy costs, emerged as a focal point in both the preliminary agreement and Trump’s subsequent reversal.
As of Sunday, Bitcoin continues trading beneath the pivotal $78,000 threshold while market participants closely monitor ETF activity and Federal Reserve policy indicators.
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