PANews reported on May 18th that, according to The Block, Bitcoin fell below $77,000 due to renewed tensions between the US and Iran and inflation concerns. The Bitcoin Fear & Greed Index has fallen from a neutral range of 40-50 earlier this week to 27, approaching the "fear" zone. Andri Fauzan Adziima, research director at Bitrue Research Institute, believes the main pressure comes from soaring Treasury yields to 12-month highs, a stronger dollar, and escalating geopolitical tensions. He points out that the current decline is a "healthy pullback" within a broader uptrend, with $74,000 as a key support level, and he is positioning for a rebound. This comes after US President Trump threatened Iran, warning that any further delays in the peace agreement could lead to US military action. BTSE Chief Operating Officer Jeff Mei noted that traders are concerned about persistent high oil prices and inflation, given the possibility of a Federal Reserve rate hike as a response.

Last week, Bitcoin ETFs recorded a weekly net outflow of $1 billion, ending a six-week streak of inflows. Min Jung, associate researcher at Presto Research, stated that ETF outflows reflect institutional investors reducing their short-term exposure amid continued delays in expectations of a Federal Reserve rate cut, with portfolio managers shifting towards cash or defensive positions. She expects Bitcoin to remain highly correlated with macroeconomic markets in the short term. Dominick John, an analyst at Zeus Research, anticipates the market will exhibit range-bound trading, sensitive to headlines, with more pronounced directional volatility only emerging when a macroeconomic signal breaks the consensus.