- Bitcoin has dipped below $73,000 amid wider U.S.-Iran tensions and ETF withdrawals.
- Nearly $959 million in crypto positions were liquidated in 24 hours, with long traders accounting for most losses.
Bitcoin price dropped below $73,000 after fresh pressure from macro markets, U.S. Treasury cash flows, and renewed Middle East tensions hit risk assets. The move marked one of Bitcoin’s weakest levels since mid-April and pushed traders to reassess near-term support after the market lost the $75,000 range.
The decline followed a wider sell-off across crypto majors. Bitcoin traded near $72,900 in Asian hours after falling over 3% in 24 hours, but slightly recovered to $73,100 at press time. Ether slipped below $2,000, while Solana, XRP, and Dogecoin also posted losses. The move showed that traders moved away from riskier assets as geopolitical risks and tighter liquidity conditions returned to the market.
Fresh U.S. strikes on an Iranian military site near the Strait of Hormuz added pressure to global markets. The renewed tensions lifted oil prices and weakened risk sentiment, while Asian shares and U.S. stock futures moved lower. Crypto reacted quickly, with leveraged traders facing one of the largest liquidation events of the year.
🚨JUST IN: U.S. military just struck Iran, destroying 4 drones and bombing a launch site seconds before another attack.
Defensive strikes to protect the ceasefire.
Mullahs keep pushing, consequences incoming.
Praying for our troopsHT @EricLDaugh pic.twitter.com/weP2dSwoPi
— Commentary Donald J. Trump Posts From Truth Social (@TrumpDailyPosts) May 28, 2026
CoinGlass data showed nearly $959 million in crypto liquidations over 24 hours across more than 167,000 traders. Long positions accounted for about $897 million of that total, showing that many traders had positioned for a rebound before the market moved lower. Bitcoin led the liquidation count with about $386 million, followed by Ether with roughly $246 million.
The long-skewed wipeout matters for the next move. When traders build heavy long exposure near support and price breaks lower, forced selling can deepen the drop. That dynamic appeared as Bitcoin lost the $75,000 area, which analysts had viewed as an important short-term level.
Liquidity Drain Adds Pressure to Bitcoin
Fund manager Michael Kramer of Mott Capital Management warned that upcoming U.S. Treasury operations could drain about $150 billion from the financial system between May 28 and June 5. The schedule includes Treasury bill settlements, coupon settlements, and another bill settlement in early June.
When the Treasury issues securities, investors send cash that moves into the Treasury’s account at the Federal Reserve. That process can pull money from the banking system for a period and reduce cash available for other markets. Bitcoin often reacts to these shifts, especially when traders already show caution across risk assets.
Kramer said Bitcoin tends to act as a better liquidity indicator than many other instruments. He argued that a Treasury-driven liquidity drain could push Bitcoin lower if cash conditions tighten further. The warning came as Bitcoin had already dropped about 11% from recent highs above $82,500.
ETF flows also added pressure. U.S. spot Bitcoin ETFs recorded about $1.5 billion in net outflows so far in May. That withdrawal reduced a key source of demand that had supported Bitcoin during earlier rallies. Reports of a large block sale tied to the iShares Bitcoin Trust also weighed on sentiment.
Earlier on, we reported BTC had entered a high-risk zone as Swissblock’s Risk Index showed stronger selling pressure across the market. The report also noted that ETF demand has weakened, leaving Bitcoin with less institutional support during the latest pullback.
Traders are now watching whether Bitcoin can reclaim the $73,000 to $75,000 zone or continue toward lower support. A recovery above that area could slow selling pressure and reduce liquidation risk.
