Bitcoin Price Plummets Below $77K: Spot Selling, ETF Outflows, and Fear Grip Market

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<a href="https://jpyeur.com/btc-usd/">Bitcoin</a> Price Falls Below $77K: Why <a href="https://pricpr.com/btc-usd/">BTC</a> Price Saw a Sharp Sell-off This Week?

This week, the price of Bitcoin dropped to around $77,000, continuing a four-day losing streak as more people started selling. This decline is happening because Bitcoin ETFs are seeing money flow out, more selling is occurring on the market, and investors are becoming fearful – a feeling that hadn’t been prominent in weeks.

Bitcoin’s recent price gains are slowing down after it couldn’t stay above $81,000, leading some to worry about a potential larger price drop.

What caused Bitcoin’s price to drop this week, and what’s behind the recent selling? Here’s a look at the main factors contributing to the current downturn.

Spot Selling Appears to Be Driving BTC Lower

Experts who study Bitcoin transactions say the recent price drop isn’t likely caused by traders rushing to close out risky bets in futures markets. The amount of money invested in these futures contracts hasn’t changed much, suggesting traders aren’t panicking. Instead, the decrease seems to be driven by more Bitcoin being sold on regular exchanges and increased selling pressure.

Recent data shows a large increase in Bitcoin being sent to exchanges during the recent price drop, which often suggests people are planning to sell. Trading also picked up as Bitcoin fell below key price levels. While price drops caused by futures trading often recover quickly after leveraged positions are closed, corrections driven by regular selling can take longer if there isn’t enough buying interest.

Bitcoin ETF Outflows Add Pressure

Investor confidence seemed to weaken as well. U.S. Bitcoin ETFs experienced approximately $649 million in net outflows on May 18th, which further contributed to the price decline of Bitcoin.

Bitcoin ETFs experienced significant outflows on May 18th, totaling $649 million, according to SoSoValue. BlackRock’s IBIT ETF was responsible for the majority of these withdrawals, with $448.36 million leaving the fund. Ethereum ETFs also continued to face selling pressure.

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The BlackRock IBIT ETF saw nearly $448 million withdrawn recently. At the same time, about 5,847 Bitcoin (worth around $449 million) were moved to Coinbase Prime, leading to discussions among crypto enthusiasts about whether this indicates a change in where Bitcoin is held or actual selling. These significant withdrawals from ETFs happen at a crucial time for Bitcoin, particularly after months of steady buying from institutions which had been driving its price up.

Fear Returns to Crypto Markets

People are starting to feel more hesitant about retail investing. Recent data shows more online discussion about Bitcoin being negative than positive – something we haven’t seen since April. This suggests increasing worry within the crypto community as Bitcoin’s price drops.

Interestingly, when people have been extremely fearful about Bitcoin in the past, it’s often turned out to be a good time to buy. Historically, big drops in price following widespread pessimism have been followed by price increases as those who panicked sold their Bitcoin. However, even if people start feeling better about Bitcoin, the price might not go up if there are still more people selling than buying.

Bitcoin Price Outlook: Can BTC Hold $75K?

Bitcoin’s price seems to have stalled around $81,700, and is now falling. It’s heading towards a support level between $72,000 and $75,000, where many investors previously bought Bitcoin. If the price drops below this range, it could fall much further as demand decreases.

Bitcoin needs to rise back above $81,700 to suggest the recent price drops are over. If buyers step in, the next significant hurdles are around $95,000 and then $107,000. Currently, traders are watching to see if Bitcoin can find stability or if prices will continue to fall for the next few days.

Will Bitcoin Price Bounce or Fall Further?

Bitcoin’s recent price decrease seems to be caused by people selling on the market, money leaving exchange-traded funds (ETFs), and a generally negative outlook, rather than urgent selling in futures trading. This is an important difference, as it could influence what happens next. If Bitcoin stays above $76,000, the increasing pessimism might actually lead to a price increase as some investors see it as a buying opportunity. But if the price falls below that key level, it could fall much further in the coming days.

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2026-05-19 16:07