Crypto markets found support on Friday after reports suggested the United States and Iran were close to extending their ceasefire and reopening shipping routes through the Strait of Hormuz.
Summary
- Crypto prices steadied as reports pointed to a potential 60-day U.S.-Iran ceasefire extension and easing oil prices.
- Bitcoin ETF outflows reached $2.85 billion over nine straight sessions, while Ethereum ETFs extended their losing streak to 13 days.
- Traders are watching a $6.1 billion Bitcoin options expiry on Deribit, with max pain positioned near $75,000.
According to data from CoinGecko, the total cryptocurrency market capitalization held near $2.56 trillion after falling nearly 4% during the previous session, while Bitcoin (BTC) stabilized above the $73,000 support area after briefly testing the $72,600-$73,000 range.
Ethereum (ETH) hovered around the $2,000 level after briefly falling below the threshold for the first time since late March, while major altcoins including Solana (SOL), XRP (XRP), BNB (BNB), and Dogecoin (DOGE) traded in a narrower range as liquidation-driven selling eased.
Crypto prices stabilized after reports that U.S. and Iranian negotiators had tentatively agreed to extend their ceasefire by 60 days and potentially allow unrestricted shipping through the Strait of Hormuz. The proposal, cited by several media reports, also includes Iran removing mines from the waterway within 30 days.
President Donald Trump has not yet approved the proposed terms, while Vice President JD Vance said it remains unclear whether a final agreement can be reached.
Oil prices retreated as traders reacted to the latest developments. WTI crude futures fell below $88 per barrel, while Brent crude dropped under $92. Market data showed the U.S. oil benchmark has declined more than 12% this month as expectations for a diplomatic resolution increased.
At the same time, risk appetite improved across 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.
Liquidation pressure eases after market rout
According to CoinGlass data, the crypto derivatives market has calmed significantly after Thursday’s sharp selloff triggered one of the largest liquidation events in recent months.
The analytics platform reported roughly $217 million in liquidations over the past 24 hours, far below the estimated $941 million wiped out during the previous session. Long and short liquidations were also more evenly balanced, suggesting the aggressive one-sided selling that accelerated the decline has largely subsided.
Bitcoin’s recovery coincided with renewed buying interest near the $72,600 to $73,000 area, a zone that many traders have closely monitored following several previous tests on the daily chart.
Ethereum also found support after dipping below $2,000, with traders stepping in as the asset entered deeply oversold territory on several short-term momentum indicators.
Despite the rebound, institutional demand remains weak. 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 figures followed Wednesday’s $733 million exodus, the largest single-day outflow recorded this year.
According to ETF flow data, investors have withdrawn approximately $2.85 billion from spot Bitcoin funds during the current streak.
Ethereum ETFs have faced similar pressure. The products recorded $121 million in net outflows on Thursday, extending their losing streak to 13 consecutive trading days, the longest stretch since March 2025.
Beyond ETF withdrawals, on-chain metrics suggest a growing number of investors have slipped into unrealized losses following the recent market decline.
Drawing attention to recent on-chain developments, 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. The chart shared by the analyst in a May 29 X post showed the metric rising from approximately 7.75 million BTC to 8.33 million BTC as Bitcoin dropped toward the $73,000 region.
Drawing attention to the affected price range, Master of Crypto noted that many investors who accumulated Bitcoin between roughly $72,900 and $76,600 are now underwater.
“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.”
Elsewhere, Ethereum’s brief drop below $2,000 for the first time since late March has sparked mixed reactions across the crypto community.
Meanwhile, fellow analyst and crypto commentator Lucky noted that social media platforms had become flooded with “buy the dip” discussions as traders debated whether the decline presented a buying opportunity or the beginning of a deeper correction.
Traders watch $6.1 billion options expiry
Attention has now turned to the expiration of roughly $6.1 billion worth of Bitcoin options contracts on Deribit today. Data from the platform shows that 83,660 Bitcoin options contracts are set to expire, with the maximum pain price positioned near $75,000.
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, placing both levels at the center of today’s trading activity.
Meanwhile, inflation data released this week continues to weigh on expectations for Federal Reserve policy.
April’s Personal Consumption Expenditures report showed headline inflation rose 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 amid disruptions linked to the Iran conflict.
Although monthly core PCE rose just 0.2%, below economists’ 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.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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