More than $800M Liquidated as BTC Value Drops Significantly
Bitcoin has just reminded us all that it’s still the rebellious force in the financial sector. After flirting with all-time highs at the start of this month, the price plummeted to approximately $104,000 on May 30, resulting in billions in lost value overnight. This unexpected drop caught traders off guard, initiated extensive liquidations, and caused significant setbacks for BlackRock’s notable BTC ETF. In only 24 hours, $827 million was liquidated, highlighting how rapidly sentiment can shift in the crypto space.
Over $800 Million Disappeared in an Instant
Over $827 million in crypto asset investments were liquidated within just 24 hours. The majority of these were long positions, indicating that investors were betting on continuous trading market growth. Instead, it swiftly declined. Once the selling commenced, it created a cascading effect. Leverage vanished, accounts were cleared, and prices continued to fall.
BTC PLUNGES AS WHALES EXPERIENCE LIQUIDATION
Bitcoin sharply retreats with $841 million liquidated in the last 24 hours.
James Wynn’s prominent 40x Bitcoin long is now in jeopardy, while Dogecoin leads alternative coin declines in the negative territory.Source: @BTCTN pic.twitter.com/CTIeHmQ0wu
— Crypto Town Hall (@Crypto_TownHall) May 31, 2025
It wasn’t just Bitcoin that was affected. ETH fell below $2,630. Dogecoin took an even harder hit, dropping nearly 10 percent to below 20 cents. The overall cryptocurrency trading market saw a loss of approximately $160 billion in just one day.
BlackRock’s Bitcoin ETF Suffers a Setback
BlackRock’s iShares BTC Trust (IBIT) had been experiencing a remarkable run. It accumulated more than $6.3 billion in May alone and ascended into the elite category of global ETFs. Just recently, it appeared unstoppable.
However, when BTC crashed, IBIT experienced a downturn too. That’s the drawback of a spot ETF directly linked to Bitcoin’s value. It can soar when conditions are favorable, yet it can just as easily plummet when the market sours.
Currently, IBIT still possesses tens of billions in assets. Yet this decline serves as a wake-up call for investors who may have assumed the challenging times were behind them.
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Trump’s Actions with China Escalate the Turmoil
This crypto market turmoil didn’t occur in isolation. President Trump reignited U.S.-China tensions this week by proposing new tariffs on imports from China. He accused China of violating a trade agreement by restricting rare earth shipments, which are crucial for everything from tech devices to electric vehicles.
This news sent shockwaves through global markets. Stocks tumbled, commodities declined, and the crypto sector succumbed to the fear. It’s not the first instance of BTC responding to geopolitical events, but it certainly exacerbated the situation.
Temporary Struggle or the Onset of Something Greater?
Some believe this is merely a cooldown following Bitcoin’s recent upsurge. Others are less convinced. The timing is hard to dispute. A significant dump, widespread liquidations, and international update about tariffs and trade disputes? That combination is sufficient to unsettle even the most confident investors.
James Toledano from Unity Wallet indicated that the retracement may be healthy, yet cautioned that such volatility illustrates how rapidly markets can deteriorate when confidence decreases.
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What to Monitor Next
The crucial question now is whether this is a fleeting disturbance or the start of a prolonged downturn. BTC has historically rebounded quickly, sometimes within days. On other occasions, corrections have lasted for months.
One thing is certain, though. For those contemplating whether BTC had finally evolved into a calm, stable asset, this week was a stark reminder otherwise.
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Key Insights
- Over $827 million in crypto asset positions were liquidated in 24 hours as BTC fell to $104,000 on May 30.
- Long positions suffered the most, with traders anticipating an upward trend just before the sudden drop wiped them out.
- BlackRock’s Bitcoin ETF, which experienced database inflows in May, was negatively impacted as the spot Bitcoin price declined.
- Trump’s update of new tariffs on China intensified the price drop, unsettling global markets and inflicting additional pressure on crypto.
- Analysts are split on whether this represents a temporary correction or the onset of a more serious BTC downturn.
The post Over $800M Liquidated as BTC Price Falls Hard appeared first on 99Bitcoins.
