Bitcoin Slides Below $77,000 as Oil Shock and Rising Treasury Yields Hit Risk Assets
Bitcoin fell to $76,931 on May 18, dropping 1.4% in 24 hours as a simultaneous oil price shock and a spike in U.S. Treasury yields pushed investors away from risk assets.
The decline erased roughly $33 billion in cryptocurrency market capitalization within hours. Long-term holders have not moved their coins, but short-term holders are now sitting on losses, according to Binance Research data.
Exchange balances remain near six-year lows, limiting the available sell pressure.
What Triggered the Slide
Two macro forces converged early Monday. Oil prices jumped after President Donald Trump warned that the clock was ticking on Iran peace negotiations, reigniting fears of a prolonged supply disruption in the Middle East.
Simultaneously, U.S. 10-year Treasury yields pushed higher on lingering global inflation concerns, reducing appetite for assets that carry no yield. Bitcoin, which has traded in close correlation with equities and commodities during prior macro stress episodes, tracked both moves lower.
A CoinDesk report published at 04:53 BST on May 18 cited Binance Research as the source for the on-chain holder data.
Also Read: Bitcoin Drops Below $77,000 as Broad Market Sell-off Erases $33 Billion
On-Chain Picture
Exchange balances near six-year lows suggest that most coins are held off-platform, which historically limits the scale of cascading sell orders during drawdowns. Short-term holders, defined as wallets that acquired coins within the past 155 days, are now underwater at current prices.
That cohort tends to generate the most reactive selling in downturns. Long-term holders, by contrast, have shown no meaningful movement, a pattern consistent with prior mid-cycle corrections rather than distribution phases.
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Background
Bitcoin has traded in a wide range between roughly $74,000 and $97,000 since the start of 2026, repeatedly finding support near the $75,000 level during macro-driven selloffs.
The current decline follows a stretch of record-setting weeks for U.S. equity markets, which pulled capital toward stocks and away from digital assets. South Korea’s equity market separately recorded near-record volatility after a $13 billion foreign investor outflow on May 17, a signal that regional risk appetite was already deteriorating before Monday’s moves.
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Outlook
The $75,000 support zone will be the key level to watch if selling continues through the Monday session.
A sustained break below that threshold would put the late-2025 accumulation range back in focus. Clarity on Iran talks or a pullback in oil prices could remove one of the two macro headwinds quickly.
The Treasury yield trajectory will take longer to resolve, as the next Federal Reserve meeting is weeks away.
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