Bitcoin Price Plunges to Two-Week Low Amid Heightened US-Iran Tensions

Bitcoin Price Drops to Two-Week Low Amid Escalating Macroeconomic Concerns

Bitcoin, the world's largest cryptocurrency, plummeted to its lowest level in over two weeks on Monday, May 18, as escalating macroeconomic concerns linked to the US-Iran conflict led traders to trim their exposure to risk assets. The digital asset dropped to as low as $76,711, its weakest level since May 1, before recovering part of the losses.

A significant factor contributing to the decline in Bitcoin prices was the broader cryptocurrency market witnessing nearly $500 million worth of bullish liquidations within just 15 minutes during early Asian trading hours, according to data from Coinglass. This was followed by US-listed spot Bitcoin exchange-traded funds recording over $1 billion in outflows last week, the first such occurrence since late January.

The selloff in Bitcoin intensified after the cryptocurrency breached a crucial support level near $77,800. Coinglass data showed that nearly $550 million in long positions were liquidated between 6:30 a.m. and 10:30 a.m. Singapore time.

Read also: Bitcoin Price Sinks 6% Below $66,500 Amid ETF Outflows and Institutional Selling

The market is witnessing a healthy consolidation where investors are becoming more selective and disciplined rather than reacting emotionally to every correction. If Bitcoin manages to reclaim higher resistance levels decisively, it could open the door for renewed upside momentum across the broader crypto ecosystem.

Avinash Shekhar, Co-Founder & CEO, Pi42, advises investors to adopt a long-term approach, focusing on portfolio allocation, liquidity management, and fundamentally strong digital assets with sustained ecosystem activity. He believes that market cycles reward consistency and informed participation, and this phase could offer meaningful accumulation opportunities for those who stay focused on long-term wealth creation.

On the technical outlook, Harish Vatnani, Head of Trade, ZebPay, notes that BTC has a strong support zone between $75,000 and $73,000. If it bounces and sustains above these support levels, then the bulls can be expected to resume the upward move.

Read also: Bitcoin's Inflation-Hedging Potential Erodes as Price Falls Below $70,000

Oil prices continued to rise on Monday, while bond yields jumped and Asian equities traded lower. Investor sentiment remained weak due to the absence of progress on reopening the Strait of Hormuz, a vital global trade route. US President Donald Trump also warned that the "clock is ticking" for Iran to reach an agreement.