Bitcoin Falls to $73,565 on Iran Tensions, ETF Outflows, May 28

Bitcoin fell to $73,565 on May 28, down 1.80% in one day and 16.3% year-to-date. U.S. airstrikes near the Strait of Hormuz reignited Middle East tensions, while BlackRock’s flagship ETF shed $527.8 million—the second-largest daily outflow on record. Combined outflows from all 11 U.S. spot Bitcoin ETFs totaled $2 billion over two weeks. Rising bond yields and expectations of higher interest rates made the interest-free asset less attractive to investors.

ETF Selling Accelerates as Institutions Exit

BlackRock’s iShares Bitcoin Trust (IBIT) lost $527.84 million on May 27, nearly matching its record outflow of $528.3 million from January 30. The fund holds $59 billion in assets and represents close to 4% of Bitcoin’s total supply. All 11 U.S. spot Bitcoin ETFs combined shed $733.43 million on May 27 alone, with Fidelity’s FBTC losing $60.30 million and Grayscale’s GBTC losing $104.76 million. Over the past two weeks, the ETF complex has posted more than $2 billion in total outflows.

Geopolitical Risk and Rate Expectations Weigh on Price

U.S. military strikes on an Iranian military site near the Strait of Hormuz on May 27 triggered $1 billion in forced liquidations across crypto markets. Bitcoin fell as much as 1.5% to $74,017 in Singapore on May 28, its weakest level since April 20. Analysts note that rising bond yields and expectations of higher interest rates from central banks reduce Bitcoin’s appeal. The European Central Bank is expected to raise rates in June, while U.S. rate cuts are no longer anticipated.

Meyka’s Outlook and Technical Signals

Meyka rates BTCUSD a C+ with a Hold suggestion. The 12-month price target stands at $97,868, implying 33% upside from current levels. However, technical indicators show weakness: the RSI at 42.94 signals oversold conditions, while the CCI at -112.56 indicates extreme oversold territory. The 50-day moving average at $77,126 remains above the current price, acting as resistance. Bitcoin fell amid war jitters and ETF outflows as investors reassess risk exposure.

Macro Headwinds Limit Recovery Potential

Dovile Silenskyte of WisdomTree noted that Bitcoin reacts strongly to the macroeconomic environment. Rising inflation fears and higher real interest rates reduce Bitcoin’s attractiveness compared to yield-bearing assets. The Fear and Greed Index stands at 22, indicating extreme fear. Analysts at Emden Research stated that investors remain trapped in geopolitical risks and inflation concerns, dampening risk appetite. Confidence in the crypto market has evaporated, with Bitcoin down 42% from its October 2025 all-time high of $126,000.

Final Thoughts

Bitcoin faces headwinds from geopolitical tensions, rising rates, and institutional selling. With Meyka rating BTC a C+ Hold and targeting $97,868 by year-end, the data shows limited near-term upside without stabilization in macro conditions and ETF flows.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.