New Delhi, May 18: Bitcoin has reached its lowest point in May due to escalating global economic concerns linked to rising tensions between the United States and Iran. This downturn has led to a noticeable weakness across the entire cryptocurrency market.
The world’s largest cryptocurrency fell to $76,568. However, it later showed slight recovery, trading at $77,256.04, reflecting a decline of 1.42% at the time of reporting.
Other major digital assets, including Ethereum and Solana, also experienced declines. Reports indicate that within the first 15 minutes of Asian markets opening, approximately $500 million in long positions were liquidated.
Traders noted that over $1 billion was withdrawn from US-listed spot Bitcoin exchange-traded funds (ETFs) last week, marking the first such occurrence since late January.
Rising oil prices and bond yields have contributed to a downturn in Asian stock markets, prompting investors to shy away from riskier investments. Amid uncertainty regarding the reopening of the Strait of Hormuz, former President Donald Trump stated that time is running out for Iran to reach an agreement, further heightening market anxiety and pressure on risk assets.
On Monday, crude oil prices surged nearly 3% as hopes for a peace agreement waned. International benchmark Brent crude rose by 2.37%, or $2.60, reaching $111.86 per barrel, following new drone attack incidents in the UAE and Saudi Arabia.
Analysts are closely watching whether Bitcoin can maintain its position above the critical $80,000 level. They believe that ETF withdrawals and global economic uncertainty have created short-term pressure, but institutional interest in digital assets remains strong.
Market experts suggest that Bitcoin has strong support between $75,000 and $73,000, while $77,000 is viewed as an immediate resistance level. They advise investors to avoid chasing sudden price surges and instead focus on portfolio balance, cash management, and assets with solid fundamentals.
Asian stock markets also showed weakness, with Japan’s Nikkei 225 dropping nearly 1%, while the Hang Seng Index fell by over 1%. In contrast, South Korea’s KOSPI showed a slight increase of nearly 1%.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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