Bitcoin price crashed below $75,000 after intense selling pressure weakened sentiment across the broader cryptocurrency market.
Overall, the broader crypto market also tumbled significantly and is currently trading at close to $2.5 trillion. Meanwhile, some notable declines have occurred in the crypto markets, with Ethereum, XRP, Solana, Cardano and Dogecoin all seeing significant losses.
Crypto Market Crash Deepens as Bitcoin Falls Below $75K
Bitcoin price fell around 3% over the past 24 hours before ending at roughly the same price level at $74,600.
The entire crypto market also tumbled by over 3%, bringing the overall market cap down to around $2.5 trillion.
Ethereum dropped by more than 4% and remained floundering to break above the critical $2,000 price level.
XRP, Solana, Cardano, and Dogecoin also had bearish trends during the recent market-wide correction period.
Market sentiment also continued to be weak as Bitcoin failed to cross the important $75,000 price point.
Massive Liquidations Wipe Out Over $500M in Leveraged Crypto Positions
During the day, aggressive long liquidations took place on major cryptocurrency trading platforms as a result of the sudden dip in Bitcoin
In the days that followed, it was reported that over $500 million in leveraged trades were lost in just a few hours as markets became more volatile.
Bitcoin also tanked almost $55 billion in market cap in the downtrend that swept investor confidence.
Bitcoin reportedly plunged by nearly $1,000 in just 10 minutes, leading traders to be quite alarmed
As the market plunged, the liquidation cycle intensified downward pressure, as leveraged traders faced challenges to holding onto their trades.
Iran–US Tensions and Strait of Hormuz Proposal Shake Global Risk Markets
Investor sentiment was also impacted by geopolitical considerations, as tensions between Iran and the United States have been escalating in recent times.
⚡️BREAKING: Iran has just submitted a new two-phase proposal to the United States
The proposal is significant because it includes the suspension of the toll system in the Strait of Hormuz
Phase 1:
— Iran wants an official end to the war and the U.S. naval blockade + the… pic.twitter.com/FLZQXthM3B
— Iran Observer (@IranObserver0) May 23, 2026
Iran is thought to have presented a two-step offer with a proposal for sanctions relief and modifications to the Strait of Hormuz operations.
The plan was to reopen the strategic waterway while temporarily suspending the present toll collection system for transportation activities.
The Strait of Hormuz is also a significant energy transportation route in the global financial markets, making them sensitive.
As geopolitical uncertainty continued to affect risk appetite in both traditional financial and cryptocurrency markets, investors stayed cautious.
Bitcoin ETF Outflows Extend to Six Straight Days Amid Weak Investor Sentiment
Spot Bitcoin ETFs experienced another day of net redemptions, extending their losing streak to six sessions.
SoSoValue data shows that Bitcoin ETFs saw about $105 million in net outflows on May 22 trading.
According to SoSoValue data, on May 22 (ET), U.S. spot Bitcoin ETFs recorded a total net outflow of $105 million, marking the sixth consecutive day of outflows. Spot Ethereum ETFs saw a total net outflow of $6.67 million, extending their outflow streak to 10 days. pic.twitter.com/lX95yAUmuC
— Wu Blockchain (@WuBlockchain) May 23, 2026
As reported, the combined amount of outflows from all the Bitcoin ETFs amounted to almost $1.26 billion over the extended period of six sessions of continuous outflows.
Cryptocurrency ETFs were also weak on the day, with a recent day of negative institutional flows into the crypto ETFs also weighing on spot Ethereum ETFs.
Despite the optimism around long-term cryptocurrency growth and adoption, weak institutional demand indicated continued uncertainty among investors.
How Low Will Bitcoin Price Go This Month?
At the time of writing, the BTC price recovered slightly from the market’s selling pressure to close at $75,368.
The Relative Strength Index was also close to the oversold area, which indicated the bears began to gain momentum during the latest recovery attempt. The Chaikin Money Flow indicator was also in neutral territory, a sign of sluggish capital inflows in Bitcoin markets recently.
If bearish momentum continues to build over the next few trading sessions this week, Bitcoin price may soon test the immediate $74,000 support level.
If it breaks below $74,000, it could lead to a further downtrend to the key $72,500 support level as indicated by recent price action.
The positive side is that the future Bitcoin outlook would need to move past the $76,000 resistance figure again before buyers have more market control in the short term. If the breakout is successful, Bitcoin price will push towards the next resistance area at the price of $77,000.
