Crypto Market Slump: How Oil Prices and Big Liquidations Are Hitting Bitcoin and More
The crypto market has taken a hit lately, with the total value dropping to around $2.54 trillion. This marks a small daily loss of 0.36 percent and a bigger fall of over 7 percent from the peak seen on May 10.
What Triggered the Recent Drop
Prices pulled back after forming a double top pattern on the charts. This setup often signals that upward moves may pause or reverse for a while. At the same time, rising oil prices added pressure across risk assets. Brent crude has climbed about 16 percent in the past month due to tensions in the Middle East and shipping issues in key routes.
Bitcoin Price Action and Liquidations
Bitcoin eased to near $76,973, down about 1.5 percent in the last day. It now sits close to support around $76,679. Over $182 million in Bitcoin long positions were wiped out in liquidations during the past 24 hours. Overall, more than $660 million in crypto positions were cleared, with most of them being long bets.
Daily sell volume has actually slowed during this pullback. This hints that strong selling pressure may be fading, even as prices stay under pressure for now.
Ethereum and the Oil Link
Ethereum felt extra heat from the oil spike. The two assets have shown a strong inverse link lately, meaning higher oil costs often weigh on ETH. Ethereum longs alone saw over $255 million in liquidations.
Bitcoin Cash Takes a Steeper Hit
Bitcoin Cash fell sharply by 7 percent to $384. It broke below a key level at $387 and showed rising sell volume, unlike Bitcoin. This points to more active selling in BCH right now. Next support sits near $359, with a possible deeper move toward $324 if the floor gives way.
Other Factors Adding Pressure
A reported exploit on the Verus-Ethereum Bridge led to an $11.58 million loss, pushing May DeFi hacks past $20 million. On top of that, hotter inflation data and climbing Treasury yields made investors more cautious about risky assets like crypto.
Positive Developments in Japan
Despite the dip, some good news came from Japan. SBI Securities and Rakuten Securities plan to offer their own Bitcoin and Ethereum investment trusts. Several other brokerages are also looking at similar products, which could bring more steady demand over time.
What to Watch Next
The market cap now holds between $2.52 trillion support and resistance near $2.64 trillion. If the lower level stays firm, a move back toward $2.64 trillion remains possible. A break lower could open the door to $2.47 trillion. For Bitcoin, a close above $78,606 would ease the short-term pressure.
