Bitcoin Dips Below $105K as Altcoin Traders Suffer $1B Liquidations

  • Bitcoin liquidations favored shorts, reinforcing bullish pressure despite price dip.

  • Altcoin traders saw $1B in losses, reflecting weak recovery signals.

Bitcoin is trading below $105,000 after a 1.68% daily decline, reflecting heightened selling pressure in the market. Recent data from Cryptoquant shows a clear divergence in liquidation behavior between Bitcoin (BTC) and altcoins. 

BTC vs Altcoins: Liquidation Asymmetry Since ETF Launch

“Altcoin liquidations have consistently surpassed Bitcoin’s, suggesting that excessive leverage in altcoins has been aggressively punished as prices continued to trend lower.” – By @joao_wedson pic.twitter.com/mx7W9jFOJX

— CryptoQuant.com (@cryptoquant_com) May 30, 2025

Analyst Joaowedson reported that Bitcoin’s cumulative liquidation delta (CLD) leaned toward short liquidations, surpassing long positions by $190 million. This pattern highlights that traders betting against Bitcoin faced heavy losses, fueling upward price action in previous sessions.

In contrast, altcoins showed a liquidation imbalance in the opposite direction. Long liquidations outpaced shorts by almost $1 billion, as noted by derivatives tracking firms. This indicates that traders anticipating a broad altcoin rebound were heavily punished. 

Since December 2024, the gap between BTC and altcoin liquidations has widened, suggesting a market shift in risk appetite. The divergence underlines Bitcoin’s current strength while altcoins remain under pressure.

ETF Outflows Reflect Market Caution

ETF activity on May 29 pointed to increased investor withdrawals. According to data from SosoValue, the crypto market recorded a daily total net outflow of $358.65 million. However, the overall net inflow since ETF inception stands at $44.99 billion, signaling continued long-term investor interest.

Among exchange-traded products, BlackRock’s IBIT leads the sector with a net asset value of $70.39 billion. It posted a daily inflow of $125.09 million but still declined by 0.88% in price to $59.46. 

In contrast, FBTC and GBTC experienced net outflows of $166.32 million and $107.53 million, respectively. Both tickers also recorded price drops of nearly 1%. While ARKB and bitcoin ETFs saw slight increases in net assets, they too posted minor price declines. 

Bitcoin Dominance Stabilizes Amid Mixed Signals

Bitcoin’s market cap dominance remains stable at 64.10%; analysts observed a recovery from levels below 62% earlier in the month. The candlestick pattern shows a rebound, signaling that Bitcoin continues to maintain a firm grip on overall market capitalization.

Trading volume has remained elevated, with sharp spikes aligning with price changes. This suggests active participation from both buyers and sellers. 

The Relative Strength Index (RSI) currently sits at 53.31, slightly above neutral, with the 14-day RSI average at 52.58. These indicators show that Bitcoin is neither overbought nor oversold, reinforcing its steady footing amid broader market flux.

While altcoins remain under pressure and ETF flows fluctuate, Bitcoin continues to show resilience. Analysts say the stabilization in dominance and liquidation trends points to a maturing trading environment, with Bitcoin holding a relatively stronger position in the ongoing market cycle.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.

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