- Bitcoin has resumed its downward trend, failing to hold the $80,000 level after a brief April bounce.
- Analysts warn a “bloodbath” 40% crash could be looming, potentially sending BTC below $40,000.
- Investors are fleeing spot Bitcoin ETFs, with nearly $1.5 billion in outflows last week alone.
Bitcoin’s price has resumed a sharp decline in late May 2026, following a failed attempt to sustain momentum above $80,000 despite billionaire Elon Musk‘s $1.4 billion purchase. The cryptocurrency, now down 40% from its October 2025 peak, faces renewed pressure as traders exit major funds and geopolitical risks mount.
Consequently, a widely-followed crypto analyst posted a stark warning, suggesting the market could be on the brink of a significant downturn. “Bitcoin Price action could turn into a bloodbath quickly,” they stated, referencing a technical pattern that preceded a previous 40% drop.
Meanwhile, institutional demand appears to be weakening, as evidenced by sustained outflows from U.S. spot bitcoin ETFs. Data from CoinShares shows global crypto investment products lost nearly $1.5 billion last week, marking the third-largest weekly outflow of the year according to a report.
BlackRock‘s IBIT fund, the world’s largest corporate bitcoin holder, recorded substantial outflows of $448 million on May 18 alone. Market analyst Linh Tran noted that this weak institutional support leaves the current price rebound unsustainable, with selling pressure likely to return if the $80,000 level is not reclaimed.
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