Bitcoin Drops Under $73,000 Amid US‑Iran Tensions Triggering ETF Withdrawals

TLDR

• BTC fell below $73,000 after Iran’s IRGC attacked a US airbase in Kuwait, leading to a broad market sell-off.
• Combined outflows from Bitcoin and Ethereum ETFs exceeded $800 million in a single day, marking an eight-day streak of outflows.
• Over $900 million in cryptocurrency liquidations occurred within 24 hours, with $873 million stemming from long positions.
• Long-term holders currently possess 84.3% of the BTC supply and are not selling aggressively, which could mitigate further price declines.
• Key support is identified between $70,500 and $71,000; a break below $70,000 could lead to a drop to $68,000.

---

(SeaPRwire) –   Bitcoin dropped below the $73,000 mark on Thursday following an attack by Iran’s Islamic Revolutionary Guard Corps on a US airbase in Kuwait. This event triggered a risk-off sentiment across global markets, causing the total cryptocurrency market capitalization to decrease from $2.54 trillion to $2.45 trillion within a single trading session.

Bitcoin acted as a risk asset rather than a safe haven. Gold prices increased, and oil surged above $94 as BTC declined, indicating a clear divergence in how institutional investors react to geopolitical instability.

Liquidations exacerbated the price drop. In a 24-hour period, over $900 million in cryptocurrency liquidations occurred, with $873 million of that amount being from long positions. The forced selling by leveraged traders accelerated the price decline more than ETF outflows alone would have.

Analyst CryptoOnChain observed that BTC’s fall to $72,500 followed a decrease in spot demand and excessive long positioning in derivatives. The Coinbase premium index showed a deviation of -1,083% from its three-month average, representing one of the most significant discounts recorded since 2025. The premium gap narrowed to -$94.95, indicating that traders in the US were selling at prices lower than offshore rates.

Crypto analyst CryptoOnChain also noted that Binance funding rates had climbed 781% above their three-month average prior to BTC losing the $75,000 level, suggesting that speculative activity had been building before the market correction.

ETF Outflows Hit Eight-Day Streak

Thursday’s trading session saw combined outflows of over $800 million from Bitcoin and Ethereum ETFs, marking the largest single-day net redemption in several weeks. On Wednesday, Bitcoin ETFs experienced outflows of $737.70 million, and Ethereum funds saw $67.10 million in outflows.

Crypto ETF Flows — May 28

Another weak day for ETF demand…$BTC: -$223M$ETH: -$121M$SOL: +$1M

Bitcoin and Ethereum saw fresh outflows, while Solana stayed in positive territory pic.twitter.com/xIIVtvz7zm

— CoinCentral (@realcoincentral) May 29, 2026

This brings the combined two-day outflow figure to over $870 million, and the eight-session streak represents one of the most prolonged periods of institutional withdrawals since the launch of US spot Bitcoin ETFs.

The Crypto Fear and Greed Index fell to 31 on Thursday, placing it firmly within the “Fear” zone.

Long-Term Holders Stay Put — For Now

Not all investors are selling. Long-term holders currently control 84.3% of Bitcoin’s circulating supply, a level not seen since BTC traded between $105,000 and $126,000 in the third quarter of 2025.

Realized losses have also decreased. The 30-day moving average of realized losses fell to $12.85 million on May 26, down from $56 million on February 19, suggesting less panic selling at current price levels.

Binance spot trading volumes have also significantly cooled, dropping to $36.4 billion from $198.6 billion in October 2025, an 81% decrease. Lower trading volumes indicate fewer coins are changing hands, which can reduce immediate selling pressure.

An analyst on X highlighted key technical levels: Bitcoin is consolidating at the lower boundary of an ascending channel that has been active since February. This channel floor coincides with both the 100-day Simple Moving Average (SMA) and the 23.6% Fibonacci retracement level. The area between $73,000 and $71,300 is identified as a critical structural floor. If buyers defend this zone, a potential move back towards $77,000 or $79,500 could occur. A decline below $71,300 might open up a price discovery window near the February low around $60,000.

Bitcoin $BTC reached a major support zone!

The price is currently consolidating right at the lower boundary of an ascending channel that has guided Bitcoin since February. What makes this area significant is that the channel floor aligns with both the 100-day SMA and the 23.6%… pic.twitter.com/HRPTmyByYA

— Ali Charts (@alicharts) May 28, 2026

The next significant support level is situated between $70,500 and $71,000. A daily close below $70,000 could bring the 200-day Exponential Moving Average (EMA), which is near $68,000, into play.