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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InAccording to reports, Bitcoin prices slipped below the $80,000 threshold after failing to clear the critical 200-day moving average resistance at $82,400. This downward move coincided with Bitcoin ETFs recording net outflows of $635.2 million, marking the largest institutional exit since late January. Additionally, the surge in two- and ten-year US Treasury yields to 12-month highs has significantly dampened appetite for risk-on assets.
This decline occurs amid broader inflationary pressures, with German CPI data showing a 2.9% year-on-year increase per market data as of May 12, 2026. Compared to previous quarters, the current price action reflects a pivot toward profit-taking following the initial rally sparked by Clarity Act optimism. Institutional sentiment has cooled as rising real yields make non-yielding assets like Bitcoin less competitive, a trend highlighted by major desks including JPMorgan and Jane Street.
Looking ahead, traders are focusing on support levels following the breach of the $80,000 level. Market participants will be closely monitoring upcoming catalysts in the economic calendar, including US Existing Home Sales data and scheduled speeches from Fed officials Waller and Bowman. The stabilization of institutional flows into instruments like IBIT remains a primary factor to watch for a potential trend reversal in the near term.
Update: Bitcoin extended its decline, breaking below the $79,000 level as geopolitical tensions in the Middle East intensified and oil prices surged past $105 per barrel. Global risk sentiment was further dampened by the lack of progress in the U.S.-China summit, compounding selling pressure on digital assets.
Update: Additional selling pressure has emerged following MicroStrategy's Form 8-K filing, which detailed a $1.5 billion bond repurchase agreement. The company listed potential Bitcoin liquidations as a funding source, raising concerns over increased market supply from the largest corporate holder of the digital asset.
Update: Bitcoin extended its decline to break an additional support level at $79,000, recording a 3% drop and hitting its lowest levels for May. This move follows sustained selling pressure driven by US bond market volatility, pushing the cryptocurrency to test deeper liquidity zones.
Update: Bitcoin prices extended their decline, breaching a secondary support level below $79,000 as crude oil surged past $100 per barrel. This move coincided with a broader sell-off in gold and equities as traders aggressively repriced Federal Reserve rate hike expectations in response to mounting inflationary signals.