Bitcoin experienced the strongest long-term liquidation in five years, wiping out $211 million in leveraged positions on Binance. According to CryptoBusy, this massive liquidation was a decisive reset, eliminating over-leveraged traders and preparing for cleaner price action. This event occurred while Bitcoin hovered near $96,000, down from highs above $104,000 in early June.
Liquidations reflect the strong volatility of the market. Bitcoin traded between $90,000 and $104,000 in recent weeks, with significant liquidations during strong corrections. Notably, similar liquidations over $200 million occurred during the 2021 correction phase. At that time, Bitcoin dropped from an all-time high of $69,000 to $15,500 by the end of 2022.
Leverage Cycle and Whale Behavior
High leverage remains the primary driver of volatility. CryptoQuant data shows that liquidation volume closely correlates with the speed and scale of price fluctuations. In the 2022 bear market, spikes in volatility ranged from $25–75 million. Bitcoin traded between $15,000 and $25,000 for several months before recovering.
Additionally, Bitcoin reached a price of $44,000 from late 2022 to 2023. Subsequently, liquidations eased, indicating a calm market sentiment. However, the price surge in 2024 brought a frenzy of volatility. Bitcoin skyrocketed from $44,000 to over $104,000, with peak liquidation episodes once again surpassing $50 million.
Meanwhile, Glassnode data shared by analyst Ali shows changes among the largest Bitcoin holdings. Around May 26, the number of addresses holding more than 1,000 Bitcoin reached a high of 2,114. This number dropped to 2,094 by June 11, indicating a decrease of 20 high-value addresses.
Therefore, this change indicates that institutions are withdrawing funds or altering their strategic positions. There was also price volatility ranging from $96,000 to $112,000 throughout May–June. However, the majority of high-value wallets remained unchanged, indicating sustained confidence.
Furthermore, volatility among whale addresses often reflects accumulation and distribution phases. Even changes in 20 addresses can involve billions of dollars in BTC. These movements provide valuable insights into broader market sentiment.
