Quick overview

Live BTC/USD Chart

---

Bitcoin dropped to its lowest point in over five weeks due to concerns about the state of the economy and withdrawals from US exchange-traded funds. In Singapore on Thursday, Bitcoin fell as much as 1.5 percent to $74,017, its lowest level since April 20, while Ether, the second-largest token, dropped more than 2 percent.

Even though stocks have risen to record highs due to optimism about artificial intelligence, investors are unsettled by worries that the ongoing US-Iran war will fuel inflation and lead to interest rate increases. So far in May, net withdrawals from US spot-Bitcoin ETFs have totaled roughly $1.5 billion. According to Sean McNulty, Asia-Pacific derivatives trading lead at FalconX, Bitcoin’s weakness “looks mostly macro-driven, not crypto-specific.”

Financial conditions have tightened due to higher US yields and a stronger dollar, he said. ETF withdrawals and rumors of a sizable block sale of the biggest Bitcoin ETF, the iShares Bitcoin Trust, have also damaged sentiment.

According to Tony Sycamore, an analyst at IG Markets, cryptocurrency traders are becoming more cautious while they await tangible developments from the Middle East. According to Sycamore, “Bitcoin is feeling the pinch as leveraged long positions get trimmed on the break of key support levels in the mid $70,000’s, with equity markets starting to look a little tired.” He added that short-term risks are skewed downward.