Bitcoin’s recent tumble beneath the $104,000 mark has sent shockwaves through the crypto markets, triggering an avalanche of over $600 million in liquidations of bullish futures positions. This dramatic downturn, the most severe since February, underscores the volatile nature of the cryptocurrency landscape, as traders scramble to recalibrate their strategies amidst shifting economic currents.
The Liquidation Landslide
The past 24 hours have been particularly brutal for crypto enthusiasts, with a staggering $688 million in liquidations hitting traders, according to Coinglass data. A hefty 89% of these positions were long, reflecting an overwhelmingly bullish sentiment that was abruptly upended. The largest single liquidation order reached a monumental $12.25 million BTC/USDT on the OKX platform, underscoring the scale of the market’s convulsions.
Bitcoin-tracked futures bore the brunt of these losses, hemorrhaging over $153 million, while Ethereum (ETH) futures saw around $122 million vanish into the ether. Solana (SOL), XRP, and Dogecoin (DOGE) futures were not spared either, facing liquidations to the tune of $33 million, $30 million, and over $22 million, respectively.
“Markets went red on Friday on renewed tariff-related apprehensions,” remarked Alex Kuptsikevich, chief market analyst at FxPro, in an email to CoinDesk. His comments capture the broader economic unease that has seeped into the crypto market, exacerbated by geopolitical tensions. This unease contrasts with previous optimism when Bitcoin Traders Eye Breakout to New Highs as Trump Says Tariff Deals Progressing.
Tariff Tensions and Crypto Turmoil
U.S. President Donald Trump’s recent accusations against China for allegedly violating a bilateral trade deal have further strained global market dynamics. His decision to double tariffs on steel and aluminum to 50%—a move aimed at shielding domestic industries—has reverberated across global markets. With China being a major steel exporter (though much of its steel is already subject to existing tariffs), the implications of this tariff hike are profound and multifaceted.
The broader ripple effect is evident in the crypto market’s response. Ether plummeted nearly 4%, with XRP and Solana dipping around 4-5%, and Dogecoin taking a more pronounced dive of over 8% by day’s end. This sell-off highlights the interconnectedness of global economic policies and digital asset markets, where even a whiff of geopolitical tension can spark a market-wide tremor. Previously, optimism was high as Bitcoin Jumps Above $97K as Traders Optimistic U.S.-China Trade Deal Possible.
The Whales’ Shift and Market Sentiment
Adding to the complexity, data from Deribit reveals a 51% surge in open interest for Bitcoin futures since April, alongside a 126% increase in options, signaling a growing investor hunger for leverage. However, a notable shift has occurred among the so-called “whales”—those holding more than 10,000 BTC. These large holders have transitioned from accumulation to net selling, returning coins to exchanges in what many interpret as a classic profit-taking maneuver.
Such a cascade of liquidations typically signals market extremes, suggesting that a price reversal might be on the horizon as sentiment sharply swings. Yet, with the renewed tariff disputes and a jittery derivatives market, traders are bracing for a potentially tumultuous June.
What does this mean for the crypto landscape? The dynamics at play raise questions about the sustainability of current market trends and whether the crypto sector can weather the broader economic storms gathering on the horizon. As traders adjust their sails in these turbulent waters, the coming weeks promise to be anything but dull.
Source
This article is based on: Crypto Bulls Rack up $600M Liquidations as Bitcoin Drops Under $104K
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
