Bitcoin’s wild ride continues as it plunged to $104,000 on May 30, wiping out $827 million in leveraged crypto positions in just 24 hours. The sudden downturn has shaken investor confidence, dragged down major crypto ETFs, and triggered a broad sell-off across the digital asset landscape.The sell-off follows weeks of bullish momentum that had pushed Bitcoin to near-record highs earlier in the month. But those gains vanished almost overnight, marking one of the steepest and fastest liquidations the crypto market has seen in 2025.
Massive $827M Liquidated in a Day
Over $827 million in crypto positions were liquidated, most of which were long bets expecting Bitcoin and altcoins to climb higher. Instead, a wave of selling triggered a domino effect across exchanges:
Ethereum (ETH) plunged below $2,630
Dogecoin (DOGE) fell nearly 10%, dropping under $0.20
The total crypto market cap shrank by $160 billion in a single day
Leverage vanished, stop-loss orders triggered en masse, and traders watched positions get wiped out as panic selling ensued.
BITCOIN DIPS AS WHALES FACE LIQUIDATIONBitcoin pulls back sharply with $841 million liquidated in the past 24 hours.James Wynn’s high-profile 40x BTC long is now at risk, while Dogecoin leads altcoin losses in the red zone.Source: @BTCTN pic.twitter.com/CTIeHmQ0wu— Crypto Town Hall (@Crypto_TownHall) May 31, 2025
BlackRock’s Bitcoin ETF Takes a Hit
BlackRock’s iShares Bitcoin Trust (IBIT), which had seen $6.3 billion in inflows during May, wasn’t spared. The ETF, tied directly to the price of Bitcoin, fell in tandem with BTC’s decline, exposing investors to the volatile nature of spot ETFs.
Though IBIT still holds tens of billions in assets, this correction serves as a stark reminder that even institutional-grade Bitcoin products remain vulnerable to the broader market's swings.
Geopolitical Tensions Add Fuel to the Fire
Contributing to the meltdown was a new wave of geopolitical tension after President Trump announced fresh tariffs on Chinese imports, citing China's alleged breach of a rare earth export agreement. The move roiled global markets:
Stock markets and commodity prices dipped
Investor sentiment soured across risk assets
Crypto, often a high-volatility sector, absorbed the brunt of the shock
Bitcoin’s sensitivity to macroeconomic instability re-emerged, reinforcing the asset’s correlation with global risk factors.
Short-Term Volatility or Deeper Correction?
The debate now centers on whether this is a typical post-rally pullback or the start of a longer-term downtrend. While Bitcoin has recovered quickly from similar shocks in the past, the combination of:
High leverage liquidations
ETF exposure
Macroeconomic turmoil
…could make this a longer-lasting correction.
James Toledano, a strategist at Unity Wallet, commented,
“The pullback might be healthy, but it’s a stark reminder of how fragile sentiment is. When confidence dips, everything unravels fast.”
What’s Next for Bitcoin and Crypto Investors?
Investors will be closely watching:
The market's ability to reclaim and hold above the $110K level
ETF outflows, especially from IBIT and other institutional vehicles
Any further geopolitical developments related to U.S.-China trade
With historical patterns showing that Bitcoin has both collapsed and bounced back spectacularly, only time will tell whether this dip is a buying opportunity or a sign of deeper turmoil ahead.
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