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Picknexo · Review
Published May 24, 2026
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Updated: May 16, 2026 | PickNexo
The crypto market turned volatile again today as Bitcoin briefly dropped below $79,000 amid rising US Treasury yields, accelerating ETF outflows, and broader risk-off sentiment across global markets. While short-term price action weakened, regulatory momentum surrounding the US CLARITY Act and continued institutional participation remained key themes shaping investor expectations.
Large players including sovereign wealth funds, crypto exchanges, and political entities continued increasing exposure to digital assets despite market turbulence. Meanwhile, Ethereum and DeFi markets faced renewed pressure from declining demand and security concerns.
Bitcoin came under heavy selling pressure after rising US bond yields triggered a broader pullback across risk assets. BTC briefly fell below the $79,000 level, while analysts closely monitored support near $76,000.
Institutional sentiment also weakened as spot Bitcoin ETFs recorded some of their largest outflows since February. Analysts suggested that profit-taking and macroeconomic uncertainty were driving the decline rather than widespread panic selling.
More than $500 million in crypto long positions were liquidated during the correction. Solana and XRP also declined roughly 5% as traders reduced leverage exposure across the market.
Regulation remained one of the biggest narratives of the day as the US CLARITY Act cleared another important legislative step. Investors are increasingly viewing the bill as a potential framework that could bring clearer rules to the digital asset industry.
Santiment analysts described the market reaction as a “major spike of euphoria,” although they also warned that excessive bullish sentiment can sometimes lead to short-term volatility.
The crypto industry continues watching whether regulatory clarity could encourage stronger institutional participation and broader mainstream adoption later this year.
Despite market weakness, several institutional developments highlighted continued long-term confidence in crypto assets.
Abu Dhabi’s Mubadala reportedly increased its stake in BlackRock’s iShares Bitcoin Trust by 16% during Q1 2026, bringing total exposure to approximately $566 million.
Meanwhile, Strategy announced plans to retire $1.5 billion in convertible debt and hinted that it could potentially sell Bitcoin as part of treasury management efforts.
Gemini also reported strong quarterly growth, posting a 42% year-over-year increase in revenue while securing a $100 million Bitcoin investment from Winklevoss Capital.
New ethics filings revealed that President Donald Trump disclosed trades involving Coinbase, Robinhood, and Bitcoin mining stocks.
Separate filings also showed that the Trump Family Trust purchased shares tied to Coinbase, MARA, and Strategy during the first quarter of 2026.
The disclosures added another layer to the growing relationship between crypto markets and US politics, especially as lawmakers debate future market structure legislation and digital asset oversight.
Ethereum remained under pressure as analysts warned that increasing exchange supply and declining ETF demand could expose ETH to another move lower toward the $1,700 level.
In the DeFi sector, Lombard Finance announced plans to move away from LayerZero infrastructure and integrate Chainlink technology to secure more than $1 billion in Bitcoin-based assets. The decision followed the Kelp DAO exploit that reportedly caused losses of approximately $292 million.
Security and infrastructure reliability continue becoming major priorities as institutional liquidity increasingly enters decentralized finance ecosystems.
Today’s crypto market highlighted the ongoing tension between macroeconomic pressure and long-term institutional optimism. While Bitcoin struggled below $79,000 amid ETF outflows and rising Treasury yields, institutional investors and sovereign wealth funds continued expanding exposure to digital assets.
At the same time, regulatory momentum in the United States and growing political involvement in crypto markets suggest that the industry remains deeply connected to broader financial and policy developments heading into the second half of 2026.
This article is for informational purposes only and should not be considered financial advice.
Source data compiled from today’s crypto news roundup.
