As Bitcoin Whipsaws Back to $110K

Key Points:

• $551 million in crypto derivatives liquidated in past 24 hours
• Long positions accounted for 72% of losses ($395.5 million)
• 162,994 traders forced out of positions
• Largest single liquidation: $9.53 million BTC-USDT swap on OKX
• Bitcoin whipsawed from ATH of $111,000 to $107,000 before rebounding to $110,000

Market Volatility Triggers Massive Unwinding

Crypto derivatives markets witnessed a substantial shakeout over the past 24 hours, with more than $551 million in positions liquidated according to data from Coinglass. The market turbulence disproportionately affected bullish traders, with long positions accounting for nearly 72% of all losses.

The liquidation event forced 162,994 traders out of their positions across major exchanges. The carnage included one particularly painful blow – a single $9.53 million BTC-USDT swap order on OKX that was wiped out during the volatile price action.

By the numbers: Long liquidations totaled approximately $395.5 million, while short positions accounted for $155.8 million in losses.

Price Action and Macro Triggers

The cascade of liquidations followed Bitcoin’s surge to a fresh all-time high above $111,000 on May 22. However, the euphoria was short-lived as prices subsequently slipped toward $107,000 before stabilizing around $110,000 during London trading hours on Friday.

This dramatic price reversal coincided with broader market risk aversion after U.S. President Donald Trump threatened a 50% tariff on European Union imports. The announcement rattled equity markets, with the spillover effect quickly reaching cryptocurrency markets.

Exchange-Level Impact

The distribution of liquidations across major exchanges reveals varying degrees of exposure:

Ethereum futures contributed an additional $140.2 million in margin calls, highlighting the widespread nature of the market correction.

Market Positioning and Technical Factors

Beyond the macro events, market analysts point to several technical factors that exacerbated the liquidation cascade:

1. Elevated funding rates prior to the correction
2. Crowded bullish positioning in the lead-up to the record price print
3. Technical resistance at the psychological $112,000 level

What Traders Are Watching Next

Market participants are now closely monitoring several key indicators to gauge whether the correction has run its course:

• Whether collective funding rates flip negative – often a sign of market capitulation and potential bottoming
• Price support in the $105,000-$107,000 range – a critical technical level established earlier in May
• Upcoming economic data, particularly U.S. PCE inflation figures due on May 30
• Further developments in the tariff dispute between the U.S. and EU, with updates expected next week

Analyst perspective: “The combination of leveraged long positioning and an external macro shock created perfect conditions for a liquidation cascade. However, the quick recovery toward $110,000 suggests underlying demand remains strong despite the volatility.”