Bitcoin rebounded above $77,000 on May 19 after a late dip near $76,000, then stabilized around $77,200 amid sharp volatility. The main catalyst was a U.S. President’s postponement of renewed military action against Iran, which eased broader market stress and pushed WTI crude above $111 per barrel. Equity markets reacted unevenly across Asia and Europe, with South Korea’s Kospi falling while other indexes were mostly flat or modestly higher. Despite the rebound, bitcoin’s May gains were largely erased after recent bleeding and a breach below $78,000. Analysts warned that weak spot ETF demand and leveraged yield vehicles are sputtering, leaving liquidity at its worst since February and making bitcoin vulnerable to external shocks and higher-for-longer rates.
"Bitcoin climbed back above $77,000 on the morning of May 19, rebounding from a lateMonday dip to $76,000. The recovery remained uneven, with the cryptocurrency whipsawing through sharp volatility before stabilizing near $77,200 by 3:50 a.m. EST. The primary catalyst for the modest rebound appeared to be an announcement by U.S. President Donald Trump postponing the resumption of military action against Iran."
"Bitfinex analysts noted that weak demand for spot ETFs has left crypto liquidity at its worst since February. Future recovery depends on fresh capital to exceed the current $2.8 billion in onchain flows. Analysts at Bitfinex warn that the breach below the critical $78,000 threshold exposes severe structural rot beneath the surface of the crypto market."
"Specifically, the two primary engines of marginal demandspot ETFs and leveraged yield vehiclesare sputtering simultaneously, just as macroeconomic headwinds intensify. This is making Bitcoin highly vulnerable to exogenous shocks and a potential higher-for-longer' interest rate regime at a time when liquidity conditions have deteriorated to their worst levels since February, Bitfinex analysts warned."
"While previous social media declarations from the President regarding Iran triggered sharp market turnarounds, institutional reaction to this latest TACO momentum remains decidedly mixed. In Asia, the Nikkei and Hang Seng indices remained largely flat, while South Korea's Kospi plunged nearly 250 points (3.25%). In Europe, the CAC and FTSE saw modest opening gains of under 1%, while the DAX led the region with a 1.3% bounce."
Read at news.bitcoin.com
Unable to calculate read time
Collection
[
|
...
]