Bitcoin dropped below $75,000 for the second time in May, touching an intraday low near $72,600 as the market’s recovery from spring lows lost momentum again.
The first break below the psychological threshold occurred on May 23, when spot ETF outflows and forced liquidations pulled BTC to roughly $74,300. A second dip followed on May 28, with the intraday low reaching $74,200. According to Glassnode’s May 27 report, both moves reflect Bitcoin stabilizing above its deeper-cycle support floor near $60,000, but the $75,000-$78,000 band has become a structural bottleneck.
“The market’s $75,000-$78,000 band has become a bottleneck, with spot demand, ETF flows, and options positioning all retreating too far to drive a convincing recovery,” according to Glassnode analysis reviewed by CryptoSlate reporter Gino Matos.
ETF Outflows Persist Through May
US spot Bitcoin ETF outflows have accelerated through late May. Farside Investors data shows $648.6 million in outflows on May 18, followed by $331.1 million on May 19 and $105.2 million on May 22. Another $333.6 million flowed out on May 26. The cumulative toll: $2.26 billion in US spot Bitcoin ETF outflows over two weeks through late May.
The timing aligns with broader equity market weakness. US equity funds recorded over $12 billion in outflows in the week ending May 20 as long-term borrowing costs climbed. Bitcoin closely tracked that deterioration, moving in tandem with global risk appetite rather than establishing independent strength.
Options Gamma and Dealer Positioning
Options markets compound the structural problem. Dealers have concentrated positioning around $75,000-$76,000 strikes for the May monthly expiry, creating $8 billion in negative gamma near that level. Negative gamma means dealers are net short, forcing them to sell into rallies and buy into dips, which mechanically dampens volatility and constrains upside momentum.
Yet Glassnode notes that price had already stalled at the $78,000 wall before the expiry overhang built, suggesting demand failure rather than mechanical hedging as the primary driver of the range. The $75,000-$78,000 band sits directly beneath the Short-Term Holder Cost Basis and True Market Mean, both converging near $78,000. Trading below that cluster leaves recent buyers clustered close to spot at breakeven or underwater, converting them from a support base to a potential selling source.
Spot Volume and On-Chain Signals
Spot Volume Delta, a measure of buy-side versus sell-side pressure, has rolled back toward sell-side dominance in recent sessions, erasing a brief recovery from earlier in May. The Short-Term Holder Realized Profit/Loss Ratio currently stands at 1.56, below the 2-5 range associated with early bull markets. Short-term holder net realized P&L has recovered from -0.44% in February to around -0.02%, indicating minimal net selling pressure but also minimal conviction.
Glassnode cites constrained liquidity, elevated yields, oil price volatility, a firm dollar, and unresolved Iran-related geopolitical uncertainty as forces keeping Bitcoin correlated with global risk appetite. Until those macro headwinds ease or spot demand re-emerges, the $75,000-$78,000 band is likely to remain a ceiling rather than a launching pad.
