A wave of liquidations amounting to $560 million in long and short positions was triggered by Bitcoin’s recent retreat from its all-time high of $111,000.
A wave of futures position liquidations was triggered by Bitcoin’s (BTC) recent pullback, contributing significantly to market volatility. On Friday, May 23, a total of 160,905 traders were affected across crypto exchanges, with the combined value of liquidated positions reaching $563.20 million.
Among the total liquidations, long positions were responsible for $418.63 million, whereas short positions accounted for $144.35 million. As reported by Coinglass, the most substantial single liquidation order occurred on OKX, involving a BTC-USDT trade valued at $9.53 million.
The highest losses were incurred by Bitcoin traders, with total liquidations reaching $153.04 million, followed closely by Ethereum at $144.19 million. In both instances, the majority of liquidated positions were long trades, likely attributed to increased market volatility.
Trump Tariff Threats Trigger Pullback in Bitcoin and Ethereum
Within the past 24 hours, a decline was experienced by Bitcoin, dropping from its all-time peak of $111,970 to around $107,000, before recovering to $109,231. Simultaneously, Ethereum’s value decreased from a daily high of $2,731 to a low of $2,508, followed by a rebound to $2,574.
Shortly after U.S. President Donald Trump issued threats of new punitive tariffs against the European Union and Apple, both major cryptocurrencies experienced declines. Heightened trade tensions were viewed as detrimental to risk assets such as Bitcoin and Ethereum, as a low-growth economic outlook tends to reduce traders’ willingness to engage in speculative positions.
Nevertheless, relative resilience was demonstrated by Bitcoin during the course of the trade conflict. Its previous peak was exceeded in November, aligning with President Trump’s inauguration. In contrast, Ethereum exhibited weaker performance, remaining significantly below the $4,000 threshold it had briefly surpassed that same month.
Bitcoin’s durability has been attributed to its portrayal as “digital gold.” It is being viewed by traders—particularly institutional ones—as a potential hedge against inflation and as a counter-cyclical asset. Such assets are generally favored during periods of market turbulence due to their tendency to perform well amid volatility.
