TLDR:
- $656M in crypto liquidations hit markets, with long positions taking the biggest losses
- Bitcoin options expiry worth $11.5B added volatility and triggered major sell pressure
- U.S.-China trade tensions reignited investor caution and risk-off behavior in crypto
- Bitcoin breached key 50- and 200-day MAs, signaling short-term bearish technical momentum
The crypto market has taken a hit today as digital assets across the board posted notable declines.
Bitcoin fell below the crucial $105,000 level while other major cryptocurrencies followed suit in what traders are calling a widespread correction. The global crypto market capitalization dropped to $3.55 trillion, marking a 2.0% decline over the past 24 hours.
BTC maintains its dominance at 60.5% of the total market, while Ethereum holds 9.3%. Most tokens displayed red as per a snapshot from Crypto Bubble, as the bearish sentiment swept across trading platforms.
Massive Liquidations Hit Long Positions
The crypto market bloodbath resulted in substantial liquidation events that amplified the downturn. According to market data, long positions worth $594 million were wiped out during the decline.
Short positions saw only $62 million in liquidations, creating a stark imbalance that highlighted the severity of the selloff. Total liquidations reached $656 million within 24 hours as Bitcoin bounced around the $104,600 level.
Crypto analyst Patel warned traders to protect their capital and monitor charts closely during the volatile period.
Crypto Bloodbath: Did You Survive?#Bitcoin just dipped below $105K and wiped out a ton of longs.
🔺 $594M in long positions liquidated
🔻 Only $62M in shorts
🔘 Total liquidations = $656M in 24H$BTC is now bouncing around $104,600…Watch the charts. Protect your capital.… pic.twitter.com/T4U40gZb02
— Crypto Patel (@CryptoPatel) May 30, 2025
A significant options expiry event contributed to the market downturn as approximately $11.5 billion worth of Bitcoin options contracts reached their expiration date. Market makers and institutional traders unwound their positions, creating substantial selling pressure across the crypto space.
These large-scale expiry events typically trigger increased volatility and can lead to short-term price corrections. The timing of this massive options expiry coincided with other negative market factors, amplifying the overall impact on crypto prices.
Trade Tensions and Economic Uncertainty Weigh on the Crypto Market
Macroeconomic concerns further dampened investor sentiment as U.S.-China trade negotiations showed signs of stalling.
Treasury Secretary Scott Bessent confirmed during a Fox News interview that trade talks had hit roadblocks. Bessent stated that the complexity and magnitude of the negotiations would require direct communication between both country leaders to reach an agreement.
The uncertainty surrounding trade policies and potential tariff reinstatements triggered a risk-off sentiment among investors. This led to reduced appetite for speculative assets like cryptocurrencies as market participants sought safer investment options.
The crypto market also faced technical challenges as key support levels were breached during the decline. Bitcoin price action broke below both its 50-day and 200-day moving averages, signaling a potential shift toward bearish momentum in the short term.
These technical breakdowns often encourage additional selling as algorithmic trading systems and technical analysts interpret the signals as negative price indicators. The fundamental pressures and technical weaknesses have created a challenging environment for crypto bulls attempting to defend key price levels.
