Bitcoin faced a decline in May due to escalating macroeconomic worries linked to the US-Iran conflict, impacting the overall crypto market. The leading cryptocurrency dropped to $76,711 before recovering slightly to $76,985.11 by 2.25 pm, with other major digital assets like Ether and Solana also experiencing decreases.
Reports indicated that nearly $500 million worth of long positions were liquidated within a short span of about 15 minutes during early Asian trading hours. Additionally, US-listed spot Bitcoin exchange-traded funds witnessed over $1 billion in outflows last week, marking the first such instance since late January.
The surge in oil prices and bond yields contributed to a downturn in Asian equities, prompting traders to move away from riskier assets. Amid ongoing uncertainty surrounding the reopening of the Strait of Hormuz, US President Donald Trump’s warning to Iran to reach an agreement soon added to market concerns, impacting sentiment towards speculative assets.
Crude oil prices saw a 3% increase on Monday as hopes for a peace deal diminished. Brent crude, an international oil benchmark, rose by as much as 2.37% to $111.86 per barrel following a new series of drone strikes targeting the UAE and Saudi Arabia.
