Bitcoin Falls Below $78,000 as ETF Outflows Continue

Bitcoin fell below $78,000 on May 21, erasing overnight gains and trading near $77,200 as spot‑Bitcoin ETF outflows and a 0.3% price decline produced $44.3 million in liquidations.

The cryptocurrency climbed from just over $77,200 to briefly breach $78,000 before midnight. Two waves of selling pushed the price down, then a short rally returned it above $78,000 for under an hour. Bitcoin slid through the morning to just under $76,700 at about 9:44 a.m. EST, then recovered to roughly $77,200 at the time of reporting. The 24‑hour change was about a 0.3% decline and market capitalization remained near $1.55 trillion.

Volatility across exchanges forced $44.3 million in liquidations across both long and short positions. Traders and market data point to continued outflows from spot‑Bitcoin ETFs as a primary source of selling pressure. Data show some ETF holders used small price recoveries to sell and reduce exposure, rather than add to positions.

Bitcoin’s weakness followed a sharp weekend drop tied to fears the U.S. might resume combat operations against Iran. Reports that strikes were postponed and diplomatic talks progressed did not restore the earlier momentum that took bitcoin above $82,000 on May 6. Since May 14, bitcoin has fallen more than $4,500, or nearly 6%.

A social media commentator tracking both markets wrote, “The once‑tight correlation between Bitcoin and the Nasdaq has come to an end.” The commentator noted that bitcoin has fallen about 40% from recent cycle peaks while the Nasdaq has rallied about 26% since the divergence.

Some market participants say a sustained recovery for bitcoin would likely require new retail demand rather than reliance on short‑term trading flows. For now, persistent ETF withdrawals, recent geopolitical concerns and the price action over the past two weeks have left bitcoin trading below the $78,000 threshold and exposed to further downside if selling continues.