Cryptocurrency markets found support on Friday after reports emerged that the United States and Iran were close to extending their ceasefire by 60 days and potentially reopening unrestricted shipping through the Strait of Hormuz. The developments eased geopolitical pressure that had weighed on risk assets through the week, allowing crypto prices to stabilize after Thursday’s sharp selloff triggered one of the largest liquidation events in recent months.
According to CoinGecko data, the total cryptocurrency market capitalization held near $2.56 trillion after falling nearly 4% during the previous session. Bitcoin stabilized above the $73,000 support area after briefly testing the $72,600 to $73,000 range, while Ethereum hovered around the $2,000 level after briefly falling below the threshold for the first time since late March. Major altcoins including Solana, XRP, BNB, and Dogecoin traded in a narrower range as liquidation-driven selling eased.
What the Iran Ceasefire Reports Mean for Crypto Markets
The stabilization in crypto prices followed media reports that U.S. and Iranian negotiators had tentatively agreed to extend their ceasefire by 60 days and allow unrestricted shipping through the Strait of Hormuz. The proposal also reportedly includes Iran removing mines from the waterway within 30 days, a development that would significantly reduce supply chain disruptions affecting global oil flows.
The geopolitical backdrop had been a persistent source of volatility for both traditional and crypto markets in recent weeks. The Strait of Hormuz handles a significant share of global oil traffic, and uncertainty about its accessibility had pushed energy prices sharply higher throughout May. President Donald Trump has not yet approved the proposed terms, and Vice President JD Vance said it remains unclear whether a final agreement can be reached. The situation remains fluid, and markets are pricing in the possibility of a deal rather than its confirmation.
Oil prices reflected the improved sentiment. WTI crude futures fell below $88 per barrel while Brent crude dropped under $92. U.S. oil benchmarks have declined more than 12% this month as expectations for a diplomatic resolution increased, reducing the energy price premium that had been feeding through into broader inflation data.
Risk appetite also improved in traditional markets. Japan’s Nikkei 225 advanced 2.5% on Friday while Hong Kong’s Hang Seng Index gained 0.5% as investors returned to technology and growth stocks. The simultaneous recovery across crypto and equity markets reflected a broader easing of geopolitical risk premium rather than a crypto-specific catalyst.
Liquidation Pressure Eases After Thursday’s Market Rout
Thursday’s session was severe by recent standards. CoinGlass data showed roughly $941 million in crypto liquidations during the previous 24-hour period, one of the largest single-session liquidation events in recent months. The aggressive selling created a cascading effect as leveraged long positions were forced closed, accelerating the decline and pushing Bitcoin briefly below key support levels.
By Friday, that pressure had eased significantly. CoinGlass reported approximately $217 million in liquidations over the most recent 24-hour period, less than a quarter of Thursday’s figure. Long and short liquidations were also more evenly balanced, suggesting the one-sided forced selling that drove the sharpest part of the decline had largely subsided.
Bitcoin’s recovery coincided with renewed buying interest near the $72,600 to $73,000 zone, a level that many traders have monitored closely following several previous tests on the daily chart. Ethereum found support after dipping below $2,000, with buyers stepping in as the asset reached deeply oversold readings on several short-term momentum indicators.
Bitcoin ETF Outflows Extend to Nine Consecutive Sessions
Despite the price stabilization, institutional demand through regulated ETF products remains under pressure. Data from SoSoValue released on May 29 showed U.S. spot Bitcoin ETFs recorded another $228 million in net outflows, extending their withdrawal streak to nine consecutive sessions. The latest figure followed Wednesday’s $733 million single-day outflow, the largest recorded this year.
Investors have now withdrawn approximately $2.85 billion from spot Bitcoin ETFs during the current streak. That figure represents a significant reversal from the inflow environment that characterized much of early 2026, when institutional demand through ETF products was cited as a key driver of Bitcoin’s price performance. The sustained outflow streak suggests institutional investors have been reducing exposure rather than buying the dip through regulated products, even as spot market buyers have stepped in near support levels.
Ethereum ETFs have faced even more persistent outflows. The products recorded $121 million in net outflows on Thursday, extending their losing streak to 13 consecutive trading days — the longest such stretch since March 2025. Ethereum’s brief breach of the $2,000 level, a psychologically significant threshold the asset had held since late March, added to the negative sentiment around the asset in the institutional channel.
On-Chain Data Shows Growing Unrealized Losses
Beyond ETF flows, on-chain metrics reveal the extent to which the recent decline has pushed a significant portion of Bitcoin holders into unrealized loss territory. Crypto analyst Master of Crypto highlighted Glassnode data showing that Bitcoin supply held at a loss increased by roughly 580,000 BTC during the latest decline, rising from approximately 7.75 million BTC to 8.33 million BTC as Bitcoin dropped toward the $73,000 region.
The analyst identified the $72,900 to $76,600 price range as a zone where many investors accumulated Bitcoin and are now underwater. The implication for near-term price action is significant. Holders who bought in that range and are currently at a loss may use any price recovery toward their entry levels as an opportunity to exit, creating overhead resistance rather than support at what was previously treated as a demand zone.
“Many buyers got trapped near the local top. That price zone is no longer strong support. Instead, it may act as resistance, as many traders could look to sell when the price bounces back,” the analyst noted.
Elsewhere, Ethereum’s drop below $2,000 generated mixed reactions. Analyst Lucky observed that social media platforms had become flooded with discussions about buying the dip, with traders debating whether the decline represented a buying opportunity or the early stages of a deeper correction.
$6.1 Billion Bitcoin Options Expiry in Focus
Friday’s session is also shaped by the expiration of approximately $6.1 billion worth of Bitcoin options contracts on Deribit. Data from the platform shows 83,660 Bitcoin options contracts expiring, with the maximum pain price positioned near $75,000. The maximum pain level represents the price at which the largest number of options contracts expire worthless, and market makers often have incentives to push prices toward that level heading into expiry.
The largest concentration of call options sits at the $80,000 strike price, while the biggest cluster of put options is concentrated around $75,000. Both levels are at the center of Friday’s trading activity, and the expiry outcome will influence positioning going into the following week.
Inflation Data Removes Fed Rate Cut Expectations
Underlying the week’s volatility is a challenging macro backdrop. April’s Personal Consumption Expenditures report showed headline inflation rising to 3.8% year-over-year from 3.5% in March, while core PCE increased to 3.3% from 3.2%. Energy prices climbed 17.9% over the same period, reflecting disruptions tied to the Iran conflict. Although monthly core PCE rose just 0.2%, below forecasts of 0.3%, traders have largely removed expectations for Federal Reserve rate cuts in 2026 as inflation remains well above the central bank’s 2% target. That macro environment limits the tailwinds that lower rates would typically provide for risk assets including crypto.
