Bitcoin drops to two-week low as US-Iran tensions rattle crypto markets
Synopsis
Bitcoin's slide to $76,711 wasn't just a crypto story — it was a geopolitical transmission. With $500 million liquidated in 15 minutes and over $1 billion fleeing Bitcoin ETFs in a single week, the US-Iran standoff has exposed how tightly speculative assets are now wired to Middle East risk. The Strait of Hormuz isn't just an oil story anymore.
Key Takeaways
Bitcoin dropped to $76,711 on 18 May 2025 , its lowest level in May, before recovering to $76,985.11 .
Nearly $500 million in long positions were liquidated within 15 minutes during early Asian trading hours.
US-listed spot Bitcoin ETFs saw over $1 billion in outflows last week — the first such occurrence since late January.
Brent crude surged 2.37% to $111.86 per barrel after drone strikes on the UAE and Saudi Arabia .
Bitcoin support is seen between $75,000–$73,000 ; key resistance sits at $77,000 and $80,000 .
Japan's Nikkei fell ~ 1% and Hong Kong's Hang Seng dropped over 1% amid the broader risk-off mood.
Bitcoin slid to its weakest level in May 2025 on Monday, 18 May, as escalating US-Iran geopolitical tensions triggered a broad sell-off across digital assets, commodities, and Asian equity markets. The world's largest cryptocurrency by market capitalisation briefly touched $76,711 before recovering marginally to trade at $76,985.11 as of 2:25 pm IST.
Scale of the Crypto Sell-Off
The downturn was swift and severe. Nearly $500 million in long positions were liquidated within approximately 15 minutes during early Asian trading hours, according to multiple reports. Major digital assets including Ether and Solana also traded lower in tandem with Bitcoin's decline.
Compounding the pressure, US-listed spot Bitcoin exchange-traded funds (ETFs) recorded outflows exceeding $1 billion last week — the first such weekly outflow since late January, according to traders. The back-to-back institutional exit signals have added to near-term bearish sentiment.
What Triggered the Macro Shock
US President Donald Trump escalated rhetoric against Iran on Monday, warning that the 'clock is ticking' for Tehran to reach a nuclear or diplomatic agreement. Continued uncertainty over the reopening of the Strait of Hormuz — a critical global oil chokepoint — drove crude prices sharply higher.
International benchmark Brent crude rose as much as 2.37% or $2.60 to $111.86 per barrel after a fresh wave of drone strikes targeted the UAE and Saudi Arabia. Crude prices broadly gained around 3% on the day, stoking inflation fears and pushing bond yields higher — a combination that historically weighs on speculative assets such as cryptocurrencies.
Impact on Asian Equity Markets
The risk-off mood spread across Asian equities. Japan's Nikkei fell around 1% and Hong Kong's Hang Seng declined over 1%, while South Korea's KOSPI bucked the trend with a gain of nearly 1%. The surge in oil prices and bond yields was cited as the primary driver of the regional equity weakness.
Where Bitcoin Stands Now
Market participants noted that BTC holds a strong support zone between $75,000 and $73,000, with an immediate resistance level at $77,000. Analysts said markets are closely watching whether Bitcoin can sustain momentum above the key $80,000 resistance threshold.
Despite the short-term turbulence, analysts noted that institutional interest in digital assets remains broadly intact, and that ETF outflows and macro uncertainty represent near-term rather than structural headwinds. Investors were advised to avoid chasing sudden price rallies and instead prioritise portfolio allocation, liquidity management, and fundamentally strong assets.
This is the first time Bitcoin has tested sub-$77,000 levels since early May, marking a notable reversal from the recovery momentum seen in recent weeks.
Point of View
Not insulated from it. The $1 billion ETF outflow — the first in nearly four months — signals that institutional money is not yet the patient, cycle-agnostic capital it is often portrayed as. More telling is the speed: $500 million liquidated in 15 minutes suggests leverage in the system remains dangerously high despite the 2022 deleveraging. If the Strait of Hormuz situation worsens and oil holds above $110, the $73,000 support zone will face a genuine test.
NationPress
8 Jul 2026
Frequently Asked Questions
Why did Bitcoin drop on 18 May 2025?
Bitcoin fell to a two-week low of $76,711 on 18 May 2025 due to escalating US-Iran geopolitical tensions, a surge in crude oil prices, and rising bond yields — all of which pushed investors away from riskier assets. Nearly $500 million in long positions were liquidated within 15 minutes during Asian trading hours.
How much did Bitcoin ETFs lose in outflows last week?
US-listed spot Bitcoin ETFs recorded over $1 billion in outflows last week, according to traders. This was the first such weekly outflow since late January, reflecting a notable shift in short-term institutional sentiment.
What is Bitcoin's current support and resistance level?
Market participants place Bitcoin's strong support zone between $75,000 and $73,000, with immediate resistance at $77,000 and a key psychological resistance level near $80,000. Analysts are watching whether BTC can hold above these thresholds amid ongoing macro uncertainty.
How did the US-Iran conflict affect oil prices?
Brent crude rose as much as 2.37% to $111.86 per barrel on 18 May after drone strikes targeted the UAE and Saudi Arabia, with overall crude prices gaining around 3% on the day. Uncertainty over the Strait of Hormuz — a critical oil shipping route — amplified the price surge.
Should investors buy Bitcoin during this dip?
Analysts urged caution, advising investors to avoid chasing sudden rallies and instead focus on portfolio allocation and liquidity management. While institutional interest in digital assets reportedly remains intact, the combination of ETF outflows and macro uncertainty is seen as a short-term headwind.
