Yesterday, on May 19, the Bitcoin market experienced a thrilling shock. On that day, Bitcoin (BTC) price movements were like a roller coaster, once surging strongly past $107,000, reaching a new high in nearly five months. Such a sharp upward trend attracted many investors to rush in, with many convinced that Bitcoin would embark on a new round of strong upward momentum. However, the market suddenly turned sharply downward, followed by a significant price drop. As of the time of writing, Bitcoin was quoted at $103,600, having fallen more than $3,000 from its peak.
Severe price fluctuations triggered a chain reaction in the market, leading to a wave of liquidations. According to Coinglass data, a total of 140,000 people were liquidated globally in the past 24 hours, with a total liquidation amount reaching $600 million. Among them, the liquidation amount for long positions was $370 million, while the liquidation amount for short positions was $230 million. This means that both investors betting on a rise in price and those expecting a drop have suffered significant losses in this massive shock, with large amounts of capital evaporating in an instant.
Looking back at Bitcoin's previous movements, it had been in a narrow trading range for the past few days, with both bulls and bears locked in a stalemate. However, on May 18, Bitcoin broke above the upper limit of the trading range, igniting bullish sentiment in the market. Popular trader Alan stated that Bitcoin could soar to $116,000 early this week. Bitwise Chief Investment Officer Matt Hougan is also very optimistic, believing that increased institutional demand leading to a supply shock could push Bitcoin's price to $200,000 by the end of 2025. These optimistic expectations and analyses further stimulated investors' enthusiasm for buying.
However, many market analysts remain calm and vigilant. Some believe that Bitcoin's sudden surge without major positive news could very likely be a trap for bullish investors. 'Aggressive bulls may get trapped, driving the price back to $100,000.' From a market perspective, rapid price increases lacking fundamental support are often difficult to sustain, and once market sentiment turns, the risk of a price correction is extremely high.
But whether renowned cryptocurrency investor Arthur Hayes' prediction that Bitcoin could reach $250,000 by the end of the year will be fulfilled remains unknown. Will this drop be followed by a continued rise 📈📈📈 after a correction, or will it fall below $100,000!
