Bitcoin slips below key cost basis as May selloff deepens

Bitcoin slipped below key holder cost-basis levels during the May market correction, according to a Finestel report shared with crypto.news. Bitcoin closed May near $70,600 after falling roughly 8%–10% during a month marked by rising inflation concerns, higher U.S. Treasury yields, and escalating geopolitical uncertainty. The report says Bitcoin briefly topped nearly $82,839 after breaking above $79,500 resistance, but the macro backdrop worsened after April CPI came in above forecasts (CPI 3.8%, PPI 6.0%). Fed officials were described as hawkish, pushing rate-cut expectations further out under Chair Kevin Warsh. Meanwhile, U.S.-Iran negotiations added uncertainty as Treasury yields rose (10-year to ~4.66%, 30-year above ~5.18%), driving broad de-risking. On-chain and market structure signals highlighted the risk for Bitcoin bulls: Bitcoin fell below the short-term holder cost basis (around $78,200–$78,300) and beneath a broader market cost basis near $78,277. Finestel flagged a larger group of investors holding at a loss, increasing the chance of selling pressure if price rebounds toward $75,000–$78,000. Support formed between $70,000 and $73,000, a key zone to watch in June. Bitcoin dominance rose above 61% (from ~58%), suggesting capital rotated toward Bitcoin over higher-risk assets. Across professional asset managers, the response was cautious rather than panicked. Stablecoin allocations increased to 27% (from 23%), while high-conviction altcoin exposure fell to 5.5% (from 9%). Finestel’s suggested positioning: 55%–57% in Bitcoin and Ethereum, 26%–28% in stablecoins, 12%–13% in yield-focused DeFi/real-world asset strategies, and only 5%–7% in high-conviction altcoins. Ethereum underperformed, dropping about 12%–15% over the same period.