Bitcoin and altcoins experienced violent fluctuations from midnight May 29 to May 30! This wave of market action caused Bitcoin to plunge from a high of $108,000 to $104,000, and the situation for altcoins was even more dire. The catalyst behind this was a series of multiple negative factors.

First, there was a regulatory black swan attack. Late on May 28, the U.S. SEC suddenly announced the initiation of an examination procedure for the WisdomTree XRP spot ETF, raising market concerns that this was a signal of tightening regulation. This was compounded by the recently passed GENIUS stablecoin bill on May 23, which requires stablecoins to have a 1:1 reserve of U.S. dollars, leading to a sudden issuance of $5 billion in USDT in a single day and igniting selling sentiment due to expectations of liquidity tightening.

Secondly, the Bitcoin 2025 conference closed on May 29, and the "sell the news" effect, combined with a massive amount of open contracts expiring on May 31, triggered large-scale stop-losses in algorithmic trading. According to data from CoinWorld, over 310,000 people across the network were liquidated, with $1.3 billion in funds evaporating instantly, including the largest single liquidation occurring on Binance, where a BTC contract worth $32.08 million was forcibly closed. On-chain data shows that over 440,000 ETH (approximately $640 million) had liquidation prices concentrated above $1,000, and the price drop directly triggered a double kill for both longs and shorts.

Lastly, geopolitical issues fanned the flames. U.S. Vice President Pence declared at the Bitcoin conference on May 29 that "Bitcoin is a strategic weapon against China," but market disappointment over the Trump administration's "zero-cost reserve plan" spread. Coupled with South Dakota's emergency halt of the Bitcoin investment bill, policy uncertainty completely shattered investor confidence. Notably, El Salvador increased its holdings by 50,000 Bitcoins amid the plunge, and this kind of "national team" intervention actually exposed the market's fragility.

This round of collapse once again confirms the high-risk nature of the crypto market—any problem in policy direction, on-chain anomalies, or leveraged liquidations can trigger systemic risks. Currently, Bitcoin has fallen below the critical support level of $105,000, and if it cannot recover to $110,000 within 30 days, it may open the door to a medium-to-long-term bear market. What do you think? Feel free to leave your opinions in the comments section and share to remind more people to pay attention to risks! #比特币2025大会