Crypto Carnage: Bitcoin, Ethereum Lead Over $800M In Liquidations
Jun 1
2 min read
Crypto markets faced a brutal reality check as Bitcoin, Ethereum, and other major cryptocurrencies experienced significant price declines, leading to massive liquidations. Over $800 million in liquidations occurred within 24 hours, primarily affecting long positions, as the total crypto market capitalization dropped by billions.
Crypto Market Plunges: Over $800 Million Liquidated
The cryptocurrency market witnessed a sharp downturn, with total liquidations exceeding $800 million in a 24-hour period. Bitcoin and Ethereum led the losses, accounting for a significant portion of the liquidated positions. This widespread sell-off impacted thousands of traders, particularly those holding long positions, indicating a bullish sentiment that was quickly overturned.
Key Takeaways
Massive Liquidations: Over $827 million in crypto liquidations occurred within 24 hours, with Bitcoin leading at $222 million.
Market Cap Drop: The broader crypto market capitalization fell from $3.45 trillion to $3.33 trillion, a 3% dip.
Major Cryptocurrencies Affected: Bitcoin, Ethereum, XRP, Dogecoin, Solana, Shiba Inu, SUI, and ADA all experienced significant price declines.
Long Positions Hit Hardest: The majority of liquidations were from long traders, suggesting an overleveraged bullish market.
Factors Contributing To The Downturn
Several interconnected factors contributed to the market's decline:
Options Expiration: The expiration of $11.6 billion in Bitcoin and Ethereum monthly options on Deribit is believed to have triggered the massive liquidations.
Geopolitical Uncertainty: Stalled US-China trade talks and the temporary reinstatement of Trump's tariffs by a U.S. appeals court injected uncertainty into global markets, leading to risk-off behavior.
ETF Outflows: U.S. spot Bitcoin ETFs recorded significant net outflows, ending a 10-day streak of inflows and adding to the bearish sentiment.
Technical Breakdown: The total crypto market cap breaking below critical support levels triggered algorithmic selling and stop-loss orders, accelerating the downward momentum.
Impact On Major Cryptocurrencies
Bitcoin (BTC): Price slipped to around $105,000, with $222.87 million in liquidations. Long traders accounted for $209.63 million of these losses.
Ethereum (ETH): Experienced approximately $109.28 million in liquidations, with long traders bearing most of it at $89.84 million.
Dogecoin (DOGE): Plummeted nearly 10%, with approximately $22.28 million in liquidations.
XRP: Saw a 4.67% decline, with $29.83 million in liquidations.
Solana (SOL): Recorded $33.04 million in liquidations.
Despite the significant pullback, trading volumes for some cryptocurrencies, like Bitcoin, remained high, suggesting continued confidence among some traders in the long-term potential of these assets. Analysts suggest that while short-term volatility is expected, the underlying fundamentals of major cryptocurrencies remain strong, and this correction could present strategic positioning opportunities.
Sources
Bitcoin and Ethereum Lead as Crypto Liquidation Tops $724 Million, Coinspeaker.
News Explorer — Bitcoin, Dogecoin and Ethereum Dip, Pushing Liquidations Above $800 Million, Decrypt.
Bitcoin, Ethereum Dip as Trump Tariffs Back on the Table, Decrypt.
Bitcoin And Ethereum Look Poised To Pull Back, Daily Price Action.
Why Is Crypto Going Down? Bitcoin, Ethereum, XRP & Dogecoin Prices Are Falling Today, Finance Magnates.