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.
Bitcoin’s (BTC) recent pullback triggered a wave of futures position liquidations, significantly adding to market volatility. On Friday, May 23, liquidations affected 160,905 traders across crypto exchanges, with the total 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.
Bitcoin traders faced the highest losses, 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, Bitcoin dropped from its all-time high 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. Traders viewed heightened trade tensions as harmful to risk assets like Bitcoin and Ethereum, since a low-growth economic outlook typically reduces their willingness to take speculative positions.
Nevertheless, Bitcoin showed relative resilience during the trade conflict. It surpassed its previous peak in November, coinciding 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.
Traders—particularly institutional ones—view Bitcoin as a potential hedge against inflation and a counter-cyclical asset, thanks to its portrayal as ‘digital gold.’ Many attribute its durability to this narrative. Investors generally favor such assets during periods of market turbulence because they tend to perform well amid volatility.
