- Bitcoin has dropped to a two-week low and is struggling to stay above $78,000 after losing 3.2% as the crypto market cap shed $110 billion overnight.
- Bitcoin ETFs bled $1 billion, the highest net outflow since January and the first after six consecutive weeks of inflows.
Bitcoin dropped to a two-week low, struggling to stay above $78,000 as the broader crypto market was hit by a red wave heading into the weekend.
BTC trades at $77,800 at press time, dropping over 3% in the past day amid an 18% drop in trading volume to $37 billion. It has dropped nearly 5% since hitting $82,000 on Thursday when the passing of the CLARITY Act in the US Senate triggered a broader crypto market rally.
Altcoins did not fare any better. Ethereum trades 3.4% lower for the day at $2,176, with BNB, Solana and Dogecoin all dipping over 4%. Hyperliquid’s HYPE, which has led the top 20 coins by gains in recent days, recorded the largest drop among large-cap cryptos, down 10% to $41.
The overall market cap has lost $110 billion in the past day, dropping to $2.59 trillion
Despite the red wave, analysts say that the market will regain the momentum it had been building up this month. One analyst pointed out that the CLARITY Act’s passage pushed the market higher, and traders are now just selling the news. The Trump-Xi Summit in China also failed to inject any tailwind for crypto and other risk-on assets.
Another analyst says Ethereum’s price dip is “corrective rather than impulsive.” He notes that as long as Ethereum is trading above the current support region, another upside move is likely. If it breaches this level, its next support stands at $2,122; on the flip side, if it rises past $2,318, it will surge towards $2,646.
On the derivatives market, the sudden drop led to over $580 million in liquidations over the past day. BTC led with $189 million, while ETH was second with $151 million, data from CoinGlass shows.
Bitcoin ETFs Lose $1 Billion, BlackRock Leads Outflows
Bitcoin’s weekend drop has been on the cards all week, with capital infusion from institutional investors dropping drastically. In the past week, Bitcoin ETFs have lost over $1 billion, with BlackRock leading the sales.
bad news everybody
BLACKROCK IS SELLING BITCOIN pic.twitter.com/IUP1Zc8EuL
— Arkham (@arkham) May 16, 2026
BlackRock’s clients sold over $317 million in the past week, data from SoSoValue shows. The Wall Street giant currently holds 816,148 BTC, valued at $63.65 billion.
Other ETFs have also recorded outflows in the past week. On Friday alone, they lost $290 million, with all 12 ETFs recording outflows.
The drop breaks a six-week streak that saw Wall Street pour $3.4 billion into the market. As we have previously reported, institutional investors have played a significant role in propping up the market and absorbing retail dumps in recent weeks. Data in the past two weeks has shown that a sizable number of retail investors have been in profit-taking territory across most major coins.
