Bitcoin fell as much as 7% over three days to hit $76,500 on Monday morning, erasing all gains made since the start of May and wiping out the rally that had taken the cryptocurrency to 13-week highs above $83,000 just days earlier.
The trigger was geopolitical rather than structural.
On Sunday, President Donald Trump issued fresh threats against Iran over delays in peace negotiations, posting on Truth Social that "the clock is ticking." Analysts interpreted the statement as signalling a potential new military operation, and risk assets responded accordingly.
Oil moved first, with West Texas Intermediate crude surging above $104 per barrel before settling around $101, driven by the Iran tensions and the expiry of a waiver for Russian crude sales that added further supply concerns around the already-disrupted Strait of Hormuz.
Higher oil prices feed directly into inflation expectations, reinforcing the "higher for longer" interest rate narrative that weighs on both equities and crypto.
Bitcoin's drop triggered $607 million in long liquidations across crypto markets in 24 hours, with Bitcoin positions alone accounting for $190 million. Total crypto liquidations reached $677 million, a sharp reminder that the leveraged positioning that accumulates during rallies becomes fuel for the decline when sentiment turns.
The sell-off is notable because it arrived just days after strong inflows into spot Bitcoin exchange-traded funds and optimism surrounding the US CLARITY Act had supported prices. On Monday, net ETF outflows exceeded $1 billion, reversing the trend.
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Traders are watching the $76,000 level as immediate support. Analysts warned that losing this area could open a path to the $71,000 to $73,000 demand zone, with $65,000 representing the local low if selling pressure intensifies. That level would represent a 16% decline from current prices and would take Bitcoin back to where it traded before the spring rally began.
Strategy, the company formerly known as MicroStrategy, continued buying through the weakness, adding $2 billion in Bitcoin to bring its holdings to 843,738 coins.