Bitcoin continued its slide, trading around $72,900 after falling more than 3% in the last 24 hours. The broader crypto market cap dipped below $2.5 trillion, with Ethereum losing the psychological support at $2,000 and major altcoins like Solana and XRP down 2–4%.
According to CoinMarketCap data, the 24 hour trading volume surpassed $103 billion while the sell-off triggered over $933 million in liquidations, mostly long positions.
Coinglass data shows that Bitcoin dominated the crypto market liquidations in the last 24 hours, with BTC seeing a massive $363 million, followed by ETH’s $240.87 million wipe-out. Total liquidations affected 147,381 traders, with the vast majority coming from long positions as prices continued to slide.
What’s Driving the Drop
The latest drop in Bitcoin and the broader crypto market can be attributed to reigniting geopolitical tensions between the U.S. and Iran. Renewed concerns over the Strait of Hormuz and stalled ceasefire talks have fueled inflation fears and risk-off sentiment across markets.
Compounding the pressure are persistent Bitcoin ETF outflows. U.S. spot Bitcoin ETFs have seen multi-week redemptions exceeding $1.5 billion recently, with reported outflow of $733.43 million in the latest session.
The decline comes one day after President Donald Trump publicly reaffirmed his administration’s commitment to crypto. In a statement posted on X on May 27, Trump declared that his team is building a “future-proof” digital asset market structure “that cannot be undone by the crypto haters.” He claimed America is now the “crypto capital of the world” and credited his leadership with reversing the damage done by previous regulators.
Journalist Eleanor Terrett highlighted the post, noting it was Trump’s first public comment on crypto market structure since March. The statement was widely shared and sparked heated debate in the crypto community.
While some viewed it as a strong bullish signal, many traders and analysts expressed skepticism, pointing out that prices have continued to fall despite the rhetoric. Replies called for concrete action, particularly passage of the CLARITY Act before midterms, and questioned the lack of tangible progress since Trump took office.
Market Sentiment
The Fear & Greed Index sits firmly in “fear” territory. On-chain data shows some spot buying absorbing part of the ETF selling, but overall sentiment remains cautious. Many in the crypto community are frustrated that positive political headlines have not translated into price support or legislative momentum.
Year-to-date, Bitcoin remains well below its October 2025 all-time high near $126,000, reflecting a prolonged correction phase in 2026.
Traders are closely watching the $70,000–$72,000 zone as critical support. A decisive break lower could open the door to deeper losses, while a rebound toward $76,000 would likely require cooling geopolitical risks, stabilizing ETF flows, and actual regulatory progress.
Even with Trump’s latest promise of a pro-crypto framework, the market appears focused on immediate macro and flow dynamics rather than long-term political assurances. Volatility remains elevated, and participants are advised to manage risk carefully amid rapid news developments and thin liquidity.
Also read: Bitcoin Faces $15B Deribit-CME OI Test Into May-End
