The crypto markets were hit with a sharp reversal late Monday, wiping out earlier gains as Bitcoin (BTC) tumbled from its weekend highs. Over $500 million in long positions were liquidated — a harsh wake-up call for overleveraged traders. $BTC
Bitcoin’s sudden drop came in the wake of a temporary truce between the U.S. and China on trade tariffs. While this news brought relief to traditional markets, it cooled off the “risk-on” appetite that had pushed crypto into a euphoric rally last week
According to Coinglass data, more than $530 million in leveraged long positions were liquidated in just 24 hours. BTC alone accounted for nearly $200 million of that, while ETH traders took a $170 million hit. Majors across the board felt the pain — Dogecoin (DOGE) and Cardano (ADA) each slid 7%, while Solana (SOL), XRP, and BNB dropped between 5% and 6%.
This steep drop contrasts sharply with last week’s rally, where ETH surged 40% and major altcoins posted double-digit gains amid a short squeeze. That move triggered over $1 billion in short liquidations — the biggest since 2021 — and briefly sent BTC soaring past $104,000.
But momentum faded. Futures open interest plunged by more than $1.2 billion, signaling a major flush of leverage across the board.
Looking ahead, all eyes are now on the next Federal Reserve meeting in June. The outcome and policy outlook could be the catalyst Bitcoin needs to reclaim all-time highs — or signal more turbulence ahead.
For now, the message is clear: in these markets, protection and precision matter more than hype.
#BitcoinCrash
#CryptoLiquidation
#MarketReversal
