Bitcoin Price Drops Below $77K as Data Shows Sell-Off May Be Fading

Key Insights:

• Bitcoin price fell below $77,000 as Iran tensions, rising oil prices, and higher Treasury yields reduced demand for risk assets.
• Spot Bitcoin ETFs recorded over $1 billion in outflows after six weeks of inflows, adding more pressure on BTC.
• Binance data shows fewer BTC on exchanges and limited long-term holder selling, suggesting the sell-off may be easing.

Bitcoin price dropped below $77,000 on Monday as traders reacted to rising geopolitical tension, higher oil prices, and climbing Treasury yields. The decline pushed BTC to its lowest level since May 1 and triggered another wave of liquidations across leveraged long positions.

The broader crypto market also weakened during the session. Ethereum traded near $2,120, while XRP slipped toward $1.39 as total crypto market capitalization fell to roughly $2.56 trillion.

Bitcoin Price Falls as Macro Pressure Builds

Bitcoin slipped to around $76,600 in early trading after losing momentum near $82,000 last week. The decline came as traders reduced exposure to risk assets following renewed tension between the United States and Iran. President Donald Trump warned Iran that the “clock is ticking,” while markets also watched reports linked to stalled talks and possible military options.

Oil prices climbed amid uncertainty over the Middle East and the Strait of Hormuz. Treasury yields also moved higher, reducing demand for non-yielding assets such as Bitcoin. Ethereum fell near $2,122, while XRP traded around $1.39. The total crypto market capitalization also declined to about $2.56 trillion as selling spread across major tokens.

Liquidations Rise as BTC Crypto Breaks Support

The break below $77,800 triggered a fast unwind in leveraged positions. CoinGlass data showed almost $500 million in bullish crypto positions liquidated within 15 minutes during early Asian trading. Over a wider 24-hour window, total liquidations climbed above $600 million as Bitcoin and other major assets moved lower.

Bitcoin crypto led the liquidation wave as traders who expected a stronger rebound exited quickly. The move followed several days of weakness after BTC failed to hold gains from the previous rally toward $82,000. Analysts are now watching the $76,000 to $76,800 area as a key Bitcoin price support zone. A move above $80,000 would give traders a stronger signal that selling pressure is easing.

ETF Outflows Add to Bitcoin Price Weakness

Spot Bitcoin ETFs also weighed on market sentiment. U.S.-listed Bitcoin funds recorded more than $1 billion in weekly net outflows, marking their largest weekly withdrawal since January. The drop also ended six straight weeks of inflows, which had helped support Bitcoin during earlier market pullbacks.

BlackRock’s Bitcoin ETF led the weekly outflows, while all 12 spot BTC ETFs recorded withdrawals on Friday. The shift shows that institutional demand cooled during the latest macro-driven sell-off. Recent ETF selling added pressure at a time when traders were already reacting to oil, yields, and geopolitical risk.

Binance Data Shows Selling May Be Slowing

Binance Research data points to a different picture beneath the weak price action. Nearly 60% of Bitcoin’s total supply has not moved in more than one year, showing that long-term holders have not rushed to sell. That dormancy level remains near historical highs, even after the ETF approval cycle and the latest correction.

Exchange balances also continue to fall. Bitcoin held on exchanges has dropped to about 15% of total supply, the lowest level in nearly six years. That level stood near 17.6% during the COVID-era market period. Since then, roughly 500,000 BTC has moved away from trading platforms into cold storage or self-custody, reducing the amount available for immediate spot selling.

Short-term holder data also shows a market reset. Binance Research said the Short-to-Long-Term Realized Value indicator remains near a historical low. In previous cycles, that area appeared after speculative traders had already left the market. This pattern suggests that much of the weaker selling group may have already reduced exposure.

The Short-Term Holder MVRV indicator has also moved back toward the 1.0 level after staying below it for months. A reading below 1.0 shows that recent buyers hold unrealized losses. A move back above that level suggests newer holders are returning to slight unrealized profits, which can reduce forced selling during rebounds.

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