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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Crypto market participants are shifting focus toward new record highs as geopolitical risks that recently weighed on risk assets begin to recede. According to reports, Bitcoin's price dropped to a monthly low of $74,000 on Saturday morning due to tensions between the United States and Iran; however, signs of progress in peace negotiations are now acting as a bullish catalyst for a rebound toward the $80,000 target. Last week saw nearly 18,000 BTC enter exchanges, while US spot Bitcoin ETFs recorded outflows totaling 16,000 BTC.
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Sign InThis volatility comes as digital assets face pressure from bond markets and monetary policy, with markets closely monitoring the impact of global inflation on risk appetite. Looking at historical performance, periods of ETF outflows are often followed by position re-accumulation, a trend reflected in the stabilization of major altcoins like Ethereum. Per market data, the continued inflows into exchanges could signal potential overhead selling pressure if peace talks fail to deliver sustainable stability.
Investors are now watching Bitcoin's ability to break through immediate resistance levels, with the asset currently trading in a recovery range following Saturday's floor. On the economic front, the market awaits the release of the FOMC Minutes on May 20, 2026, which could dictate US Dollar direction and subsequently impact crypto prices. Additionally, inflation data from the UK and Canada scheduled for May 19 and 20 will be critical milestones for assessing global liquidity and its effect on digital assets.
Update: On-chain data shows the Bitcoin Fund Flow Ratio on Binance dropped to between 0.010 and 0.012 on May 26, 2026. This level has historically acted as a technical floor, preceding five major price rallies since 2018, further strengthening the outlook for a potential price recovery.
Update: Bitcoin price has reclaimed the $77,000 level in recent trading, demonstrating price resilience and the ability to absorb selling pressure from ongoing ETF outflows. This recovery strengthens the bullish outlook for testing higher resistance levels as geopolitical risks continue to subside.