New Delhi, May 18: Bitcoin fell to its lowest level this month on May 18, as escalating geopolitical tensions linked to the US-Iran conflict triggered a sharp sell-off across global cryptocurrency markets, reflecting broader investor anxiety over rising macroeconomic risks.
The world’s largest cryptocurrency dropped to $76,711 during early trading before recovering slightly to $76,985.11 by 2:25 pm, even as major digital assets such as Ether and Solana continued to trade in negative territory. The decline coincided with heightened volatility across financial markets, driven by uncertainty surrounding the Strait of Hormuz and its implications for global oil supply and trade stability.
Market data indicated that nearly $500 million worth of long positions were liquidated within a span of about 15 minutes during early Asian trading hours, underscoring the intensity of the sell-off. The sudden unwinding of leveraged positions amplified downward pressure on prices, contributing to a rapid drop in market valuations.
Adding to bearish sentiment, US-listed spot Bitcoin exchange-traded funds recorded outflows exceeding $1 billion last week, marking the first instance of such withdrawals since late January. Analysts noted that this shift signalled cautious investor behaviour amid global uncertainty and declining appetite for high-risk assets.
The crypto market downturn mirrored movements in broader financial markets. Asian equities traded mostly lower, with Japan’s Nikkei index declining around 1 per cent and Hong Kong’s Hang Seng also falling over 1 per cent, while South Korea’s KOSPI posted modest gains. Rising oil prices and increasing bond yields further pressured risk-sensitive assets, prompting investors to move towards safer investment options.
Crude oil prices surged by around 3 per cent on the day, with Brent crude rising to as high as $111.86 per barrel following reports of fresh drone strikes targeting the UAE and Saudi Arabia. The escalation added to fears of prolonged disruption in energy markets and intensified concerns over inflation and economic stability.
The geopolitical backdrop remained a key driver of market sentiment, with uncertainty over the reopening of the Strait of Hormuz continuing to weigh on investor confidence. Statements from US President Donald Trump warning of limited time for Iran to reach an agreement added to market volatility and reinforced concerns over a potential escalation in the region.
Despite the decline, market participants indicated that Bitcoin continues to hold a strong support zone between $75,000 and $73,000, with immediate resistance around $77,000. Analysts suggested that while recent developments have created short-term pressure, institutional interest in digital assets remains intact.
Experts advised investors to exercise caution, avoid chasing short-term price movements and focus on disciplined portfolio strategies, including liquidity management and investment in fundamentally strong assets.
The latest market movement highlights the increasing sensitivity of cryptocurrency markets to global geopolitical developments and macroeconomic shifts, reinforcing their linkage with traditional financial systems.
