Bitcoin fell to around $73,000 on Friday, touching an intraday low of $72,604 before recovering slightly to $73,235. The drop came as renewed U.S. military strikes on Iran triggered a risk-off reaction across markets, and as spot Bitcoin ETFs logged their eighth straight day of net outflows. Over $900 million in crypto positions were liquidated during the selloff, most of them over-leveraged longs.
Iran Strikes Trigger Risk-Off Move
The U.S. launched new strikes on Iranian targets this week, sending a wave of risk aversion through global markets. Bitcoin wasn't spared. The correlation between BTC and the Nasdaq Composite hit 0.96, one of the highest readings in recent months, meaning the digital asset is moving almost in lockstep with tech stocks as traders flee to cash or safe havens. The timing isn't great — Bitcoin has already been sliding for two weeks, down about 8.4% over the past 14 days.
ETF Outflows Accelerate
Spot Bitcoin ETFs have now seen eight consecutive days of net withdrawals, totaling more than $2 billion since mid-May. On May 27 alone, outflows hit roughly $733 million. That's a lot of money leaving the product that was supposed to bring institutional stability. The persistent selling suggests that the same institutions that piled in earlier this year are now trimming positions, not buying the dip.
Institutional Block Trade Adds Pressure
A massive block trade added to the downward momentum. On May 27, a reported $1.3 billion institutional block trade involving roughly 29.2 million shares of BlackRock's iShares Bitcoin Trust (IBIT) went through at about $43.16 per share. That's a huge chunk of shares changing hands in a single transaction, and it likely contributed to the selling pressure that pushed Bitcoin below key moving averages.
Technical Picture Turns Fragile
Bitcoin has broken below its 20-day, 50-day, and 100-day moving averages — a bearish technical signal. The 14-day relative strength index sits at 34.82, near oversold territory. That could mean a bounce is possible, but the key level to watch is $72,650. If that support fails, the next stop could be $70,000. Daily trading volume remains above $44 billion, which suggests active positioning rather than a full market exit. But with ETF outflows still flowing and geopolitical tensions unresolved, the path of least resistance looks lower for now.
