Bitcoin Falls Below $79,000 on May 17, Hit by Macro Headwinds and Small-Cap Stock Selloff

According to analyst Marcel Pechman, Bitcoin fell below $79,000 on May 17 after facing rejection at $82,000, tracking closely with U.S. small-cap indices as macro factors drove the decline. The cryptocurrency’s correlation with the Russell 2000 index signals markets now view Bitcoin as a risk asset rather than a safe haven. Perpetual futures funding rates turned negative and remained near 0%, indicating weak leveraged demand among traders.

Brent crude oil surged from $99 to $106 per barrel amid geopolitical tensions, exacerbating inflation concerns. However, a selloff in fixed-income markets may provide medium-term support; Japanese 10-year yields hit 20-year highs while eurozone yields jumped to 3.18%, their 15-year peak. Analysts suggest central banks may inject liquidity to counter recession risks, potentially redirecting fixed-income outflows into alternative assets including Bitcoin.