Bitcoin Plunges 3% as Trump’s Crypto Pledge Fails to Halt Geopolitical Sell-Off

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<a href="https://jpykr.com/btc-usd/">Bitcoin</a> and Crypto Down Over 3% as Geopolitical Tensions Trigger Fresh Sell-Off

Things are a bit down in the crypto market today. Bitcoin’s been dropping and is currently around $72,900, which is over 3% lower than yesterday. The whole market cap is under $2.5 trillion now, and even Ethereum fell below that $2,000 mark. Most of my other coins, like Solana and XRP, are also down a couple of percentage points, so it’s a pretty widespread dip.

The sell-off triggered over $933 million in liquidations, mostly long positions. 

What’s Driving the Drop

Bitcoin and most cryptocurrencies recently fell in value due to increased tensions between the U.S. and Iran. Worries about shipping through the Strait of Hormuz and the breakdown of ceasefire negotiations have sparked fears about rising prices and caused investors to move away from riskier assets.

Adding to the current difficulties, investors are continuing to pull money out of Bitcoin ETFs. U.S. ETFs holding Bitcoin have experienced over $1.5 billion in outflows over the past several weeks, including a recent single-day loss of $733.43 million.

This drop in value happened shortly after President Trump publicly stated his continued support for cryptocurrency. On May 27th, in a post on X (formerly Twitter), Trump said his administration is working to create a lasting and secure digital asset system, one that opponents can’t dismantle. He also asserted that the United States is now the global leader in crypto and that his policies have fixed problems created by earlier regulations.

Journalist Eleanor Terrett pointed out that this was Donald Trump’s first public statement about how the cryptocurrency market is organized since March. The comment quickly spread online and led to a lot of discussion and disagreement within the crypto world.

President Trump recently announced his administration is creating a digital asset market structure designed to be long-lasting and resistant to opposition. This is the first time he’s publicly discussed how crypto markets should be structured since March.

— Eleanor Terrett (@EleanorTerrett) May 27, 2026

Although some saw it as a positive sign for the market, many traders and analysts remained doubtful, noting that prices kept dropping even with the optimistic talk. People were asking for real results, especially the passage of the CLARITY Act before the upcoming elections, and were frustrated by the lack of clear progress since the previous administration.

Market Sentiment

The market is currently showing signs of fear, according to the Fear & Greed Index. While some people are buying Bitcoin directly, which is helping to offset sales from ETF investors, overall, people are still hesitant. Many in the crypto world are disappointed that good news about regulations hasn’t led to higher prices or actual progress in legislation.

So far this year, Bitcoin is still significantly below its peak of around $126,000 from October 2025, indicating it’s been in a long-term downturn throughout 2026.

Traders are paying close attention to the $70,000–$72,000 price range, which is acting as a key support level. If the price falls below this range, it could lead to further declines. However, for the price to rise back toward $76,000, we’d likely need to see improvements in global political tensions, consistent investment in ETFs, and positive developments in regulations.

Despite Trump’s recent statements about supporting cryptocurrency, the market seems more concerned with current economic conditions and trading activity than with future political promises. Price swings are still significant, so investors should be cautious and manage their risks carefully, especially with fast-moving news and limited trading volume.

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2026-05-28 09:25