Bitcoin Slips Below $77K as Crypto Liquidations Hit $672M
Bitcoin is sliding under $77,000 after a jump in U.S. Treasury yields, with crypto liquidations topping $672M. The 10-year U.S. Treasury yield rose to 4.63% (a 16-month high), pressuring risk assets and driving heavy selling in U.S. spot Bitcoin ETFs.
Data cited in the article shows spot Bitcoin ETF outflows reached about $1B for the week ending May 15, the largest weekly exit since late January, per SoSoValue. The prior week saw net inflows, highlighting a sharp turn in institutional positioning.
Analysts flag $77K as the key technical line. If Bitcoin breaks $77K while perpetual swap open interest remains elevated, deleveraging could accelerate and bring a retest near $70K. Over the next 48 hours, ETF flow updates are expected to be a major catalyst for direction.
Derivatives trader Georgii Verbitskii links near-term Bitcoin performance to whether the AI-driven equity rally can hold. Even with gains in major U.S. indices, Bitcoin’s rebound looks muted, suggesting a lack of strong standalone demand. The article also notes institutional sensitivity to macro rates rather than direct “crypto-for-crypto” geopolitics.
Crypto liquidations across markets exceeded $670M as Bitcoin traded around $76.8K, down about 2% to 24-hour performance. Net takeaway for traders: macro rates + ETF flows are driving momentum, and $77K is the immediate battleground for Bitcoin.
Bearish
This is a bearish setup for Bitcoin in both the short and medium term. The article links the sell-off to a macro rate shock: the 10-year U.S. Treasury yield jumping to 4.63% and expectations for a 2026 rate cut collapsing. When yields rise sharply, risk appetite typically fades, and for crypto—especially Bitcoin—this often shows up first in institutional vehicles.
Here, the key transmission mechanism is spot Bitcoin ETF flows. The week ending May 15 reportedly saw about $1B in net outflows (largest since late January). Historically, similar ETF outflow waves have coincided with break-down moves and elevated liquidation risk, because ETF sellers reduce spot demand while leverage in derivatives can unwind quickly.
Technically, the article stresses $77K as the “line to watch.” That matters because liquidations tend to cluster around round levels and key support breaks. If Bitcoin breaks $77K while perpetual open interest remains elevated, it can trigger a feedback loop: price down → liquidations up → forced selling → more downside. The cited risk of a retest near $70K fits that liquidation/deleveraging pattern.
Longer-term, ETF flow sensitivity to Treasury yields suggests Bitcoin’s recovery may remain fragile until either yields cool or ETF outflows stabilize. Even with a strong AI-led equity tape, Bitcoin’s muted rebound implies it lacks a strong standalone bid. Traders should therefore expect volatility to stay high around ETF-flow data and the $77K/$70K zone.