Bitcoin’s Pullback Triggers Massive Liquidations
Bitcoin’s recent retreat from its all-time high of $111,970 has sparked a wave of liquidations. On May 23, over 160,000 traders faced liquidations totaling $563.20 million. This event wiped out both long and short positions, with longs taking the biggest hit.
Long positions accounted for $418.63 million of the liquidations, while shorts lost $144.35 million. The largest single liquidation was a BTC-USDT bet on OKX, valued at $9.53 million. Bitcoin traders suffered the most,losing $153.04 million, followed by Ethereum traders with $144.19 million.
Bitcoin and Ethereum prices dipped after U.S. President Donald Trump threatened new tariffs on the EU and Apple. Bitcoin fell too $107,000 before recovering to $109,231. Ethereum dropped to $2,508 and then rebounded to $2,574.
Escalating trade tensions can negatively impact risk assets like Bitcoin and Ethereum. Traders are less likely to take risks in a low-growth habitat. However, Bitcoin has shown resilience, surpassing its previous high in November. This is partly due to its “digital gold” status, making it a hedge against inflation.
Ethereum,however,has not been as resilient,trading well below its November high of $4,000. Institutional investors are increasingly viewing Bitcoin as a counter-cyclical asset, which performs well in volatile markets.
