Top 3 Reasons Why Bitcoin Price Has Been Crashing Recently

Bitcoin price and the wider cryptocurrency market have remained under intense pressure amid growing investor uncertainty worldwide. 

Bitcoin price dropped from the recently attained high of $80,000 to $77,000, while the crypto market cap stood stagnant near $2.57 trillion. Volatility has amplified across digital asset markets with rising ETF outflows, $257.67 million in liquidations, and escalating Iran tensions.

Crypto Market Faces Heavy Selling Pressure as BTC Drops Sharply

The recent hit on the crypto market has been overwhelming, as both Bitcoin and foremost coins have come down hard. Despite the high crypto market uncertainty and volatility, global crypto market capital stood around $2.57 trillion.

Baitcoin price has tumbled from above $80,000 to below $77,000 over the last 24 hours of trading activity. The market activity of the top crypto has also fallen more than 5% over the last week. 

Ethereum dipped below the critical $2,300 price, whereas XRP price recently dropped below zone $1.40.

According to CoinGlass data, around 104,013 traders were liquidated within the past 24 hours on cryptocurrency exchanges. Total liquidations hit almost $257.67 million, while Binance had the biggest Bitcoin liquidation order valued at $3.04 million.

Bitcoin and Ethereum ETFs Extend Massive Outflow Streak

Bitcoin and Ethereum spot ETFs extended their negative streak as investor sentiment weakened across cryptocurrency markets this week. 

On May 20 trading sessions, Bitcoin spot ETFs saw net outflows of $70.47 million, according to data from SoSoValue. The recent withdrawals were the fourth day in a row of negative withdrawals across institutional investment products related to Bitcoin. 

According to SoSoValue data, on May 20 (ET), Bitcoin spot ETFs recorded a total net outflow of $70.47 million, extending their streak of net outflows to four consecutive days. Ethereum spot ETFs recorded a total net outflow of $28.14 million, marking eight consecutive days of net… pic.twitter.com/i8sy331ilX

— Wu Blockchain (@WuBlockchain) May 21, 2026

Ethereum spot ETFs have also been under pressure recently due to the net outflows of around $28.14 million. The ongoing redemption action indicated growing prudence among institutional investors in the face of the heightened market volatility and economic uncertainty in the global economy.

Iran War and Geopolitical Tensions

The conflict between Iran and the United States has put a strain on the international markets and cryptocurrencies. 

The oil price jumped after the news of Iran’s new uranium stance. Iran’s supreme leader allegedly rejected plans to remove enriched uranium outside of Iran. The move could stall ongoing talks with Tehran and Washington and heighten concerns about a renewed battle.

Oil prices jumped more than 4% after the announcement. Iran also stepped up its monitoring of the Strait of Hormuz, one of the world’s vital oil lanes. 

The strategic waterway transports significant oil volumes on a daily basis around the world. The oil price remained above $101.96/bbl due to energy concerns.

Investors took a wait and see approach to the financial markets, getting out of riskier investments, including equities and moving into safer ones, such as gold and the U.S.dollar.

The uncertainty also weighed on Bitcoin and other cryptocurrencies, adding to their selling pressure. However, as a community, investors hesitate to put into riskier assets when there is a geopolitical uncertainty and more military threats. 

Bitcoin has also seen some volatile price action during recent trading sessions, following uncertainty across the Middle East scene that has introduced volatility into the markets.