Crypto Liquidations Exceed $600M as Bitcoin Dips Below $104K Amid Trade Tensions
On May 31, Bitcoin prices fell beneath the $104,000 mark, triggering a wave of liquidations totaling over $600 million — the largest losses seen since February. This sharp downturn coincided with renewed trade tensions between the U.S. and China, spurring widespread volatility across global markets, including cryptocurrencies.
The sell-off was led by forced closures of bullish futures positions, with approximately 89% of the $688 million liquidations occurring on the long side, reflecting the market’s strong prior optimism. The largest single liquidation was a $12.25 million BTC/USDT trade on the OKX exchange, according to Coinglass data.
Bitcoin futures suffered the heaviest losses, accounting for more than $153 million in liquidations. Ethereum followed with roughly $122 million wiped out, while Solana, XRP, and Dogecoin futures faced liquidations of around $33 million, $30 million, and $22 million respectively.
Alex Kuptsikevich, Chief Market Analyst at FxPro, attributed the sharp market move to “renewed tariff-related apprehensions.” U.S. President Donald Trump recently accused China of violating a trade truce and doubled tariffs on Chinese steel and aluminum imports to 50%, citing concerns over broken agreements. This escalation unsettled global trade markets and raised fears of wider economic repercussions.
Though China is already subject to tariffs on much of its steel exports, Trump’s decision rattled investors, particularly impacting commodities and trade-sensitive sectors. These developments fed into growing uncertainty across risk assets, including crypto.
The broader digital asset market mirrored this downturn. Ethereum declined nearly 4%, while XRP and Solana each dropped between 4% and 5%. Dogecoin was especially hard hit, plunging over 8% in the same period.
Meanwhile, data from Deribit reveals that open interest in Bitcoin futures has surged 51% since April, with options volume increasing 126%, highlighting a rise in leveraged speculation. However, large Bitcoin holders (whales) have shifted from accumulating coins to selling, moving substantial amounts back to exchanges—a classic signal of profit-taking.
Market watchers note that such a cascade of liquidations often signals extremes in sentiment, where a reversal could be near as prices overreact. Still, the combination of escalating trade tensions and a jittery derivatives market is setting the stage for heightened volatility ahead.
