Bitcoin Breaks Below $75,000 as Three Major Risks Hit at Once

Bitcoin dropped below $74,500 for the first time in four weeks, extending losses across nine straight trading days as regulatory, monetary, and geopolitical risks all hit the market at once.

We break down the three forces pushing the price lower and the levels that could decide the next major move.

Bitcoin Price Hits a Monthly Low

The Bitcoin drop below $73,500 for the first time since April 20 marks a clear technical breakdown, confirming the loss of recent momentum across global exchanges.

CoinGecko data shows BTC trading in a weakening range, with the latest decline aligning with broader risk-off sentiment. Even traditional safe-haven assets reflected caution as investors trimmed exposure across the board.

Amid this correction, the crypto market experienced a massive wave of liquidations totaling nearly $1 billion.

According to Glassnode, Bitcoin accounted for the largest share of these liquidations, totaling $378 million. Of this total, $353 million corresponded to long positions.

Crypto market liquidations – 24 hours. Source: Glassnode

The biggest driver behind the move is regulatory. The Digital Asset Market Structure ‘CLARITY Act‘ faces growing delay risk in the United States Senate, undermining one of the most anticipated tailwinds of 2026.

Journalist Eleanor Terrett highlighted on X that the Senate adjourned until June. The bill now competes for limited floor time against reconciliation efforts, FISA reauthorization, and other urgent legislative priorities currently on the agenda.

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With only four working weeks in June and three in July before the August recess, the probability of further slippage has climbed sharply. Industry observers note prolonged delays could dampen the bullish regulatory expectations many investors built into prices.

“Crypto inner circle says banking lobbies are winning the Senate battle, delaying the CLARITY Act into midterms. Huge risk here, if the House flips blue, this framework is toast. Markets are reflecting the fear of prolonged uncertainty,” DarkHorse noted.

The CLARITY Act aims to deliver regulatory clarity by splitting jurisdiction between the SEC and the CFTC. It cleared a committee markup earlier in May, but ongoing amendment debates have created visible uncertainty.

Negotiations now cover DeFi protections and ethics provisions for government officials. Combined with a packed legislative calendar, these debates make it harder for the bill to advance quickly through both chambers of Congress.

Fed and Iran Tensions Add More Pressure

A hawkish shift at the Federal Reserve added a second layer of pressure on Bitcoin this week. Governor Christopher Waller signaled in Frankfurt that he can no longer rule out interest rate hikes during 2026.

Waller pointed to stubborn inflation and energy price shocks as the main concerns. Rate futures now price a non-negligible chance of a quarter-point hike as soon as October, a meaningful shift from earlier dovish expectations.

Bitcoin often reacts strongly to higher borrowing costs. As real yields climbed and the United States dollar strengthened, the asset extended its retreat alongside other risk assets across global markets.

On the other hand, several enthusiasts noted that the appointment of new Fed Chairman Kevin Warsh could negatively affect Bitcoin’s price due to hawkish rate actions.

“Every time a new Fed chairman is announced, BTC tends to fall; this is just a temporary fix that will lead to bigger problems later, so you have to keep accumulating,” Alberto Jesus said.

The third headwind comes from geopolitics. President Donald Trump has indicated he is seriously considering fresh military strikes against Iran if diplomatic agreements cannot be reached, according to reports cited by major outlets.

This follows earlier escalations during the 2026 conflict. Concerns over potential disruptions to energy supplies and broader Middle East stability have added another layer of volatility across both crypto and traditional financial markets.

What’s Next for the BTC Price?

Analysts warn that the combination of these three forces could trigger further downside. Some market watchers do not rule out a possible drop toward the 60,000 dollar psychological level if current supports fail to hold.

“$BTC has lost its key level – the gray zone. This automatically makes it more likely that it has peaked on the weekly chart; any gains we might see now are just rebounds before it continues to fall further. I’ve been warning for months on a weekly chart about this drop that will reach 60k again, it just happened earlier than expected,” The crypto analyst Gran Mago said.

That would mark a significant correction from recent highs. It would also test buyer conviction in an environment where regulatory hope, monetary policy, and global stability have all turned less favorable at the same time.

Despite the short-term gloom, some long-term observers remain optimistic about eventual regulatory progress and structural demand drivers, such as institutional adoption. Near-term trading, however, looks clearly dominated by caution and tight risk management.

As the weekend approaches, traders are watching whether Bitcoin can stabilize above critical support. Updates from Washington, the Federal Reserve, or the White House regarding Iran could quickly reshape sentiment in either direction.

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