Between 14:15 and 14:30 UTC on May 29, 2026, BTC saw a sharp intraday drop, with a return rate of -0.40%. The price ranged from 72,500.0 to 73,068.0 USDT, with a 0.78% amplitude. This period coincided with the U.S. financial market early trading session. Liquidity gradually recovered, but volatility increased, and prices continued the pullback trend that began in mid-May.
The main driver of this anomaly was an escalation in geopolitical risk. Tensions in the Middle East intensified; conflict between the U.S. and Iran escalated; and geopolitical stress around the Strait of Hormuz continued to heat up, causing risk-off sentiment to spread across the market. As a high-beta risk asset, crypto was hit first as expectations for macro liquidity tightened. Geopolitical conflict also boosted expectations for higher oil prices, further reducing expectations for the Fed to cut rates soon.
In addition, ongoing institutional capital outflows created direct sell pressure. Spot Bitcoin ETFs recorded net outflows for seven straight days of about $1.70 billion. BlackRock’s IBIT saw daily outflows exceeding $527 million, signaling a clear weakening in institutional demand. Pressure in the derivatives market also rose in parallel. On the day, about $6.25 billion worth of BTC options contracts expired. Put open interest was concentrated at the $75,000 strike, and long position liquidations totaling $897 million compounded the negative feedback loop, accelerating the downside. On-chain data also shows long-term holders sold about 143,000 BTC over the past 30 days (worth about $9.5 billion). Miners continued transferring tokens to exchanges, making the structural sell pressure more pronounced. Market sentiment is in an extreme fear zone (Fear & Greed Index: 23). Retail long positions account for 63.9%; crowded positioning increases the risk of panic selling.
In the short term, investors should monitor whether the $72,000 support holds and track on-chain fund flows. If geopolitical conditions ease or ETF flows turn around, it could trigger a corrective rebound. However, volatility is currently elevated, so it’s advisable to stay on the sidelines with light exposure or watch for changes in volume around the resistance zone of $73,000-$74,500.
