Bitcoin's 4% Price Swing Triggers $551 Million in Crypto Liquidations

Crypto derivatives experienced significant liquidations, totaling over $551 million in positions over the past 24 hours. This liquidation event was primarily driven by Bitcoin's price volatility, which saw a surge to a fresh all-time high above $111,000 on 22 May, followed by a decline toward $107,000 and a subsequent rebound to $110,000 during London trading on Friday. The shake-out forced 162,994 traders out of their positions, with the largest single hit being a $9.53 million BTC-USDT swap order on OKX. Long positions accounted for approximately $395.5 million of the damage, while short positions accounted for $155.8 million.

The reversal in Bitcoin's price coincided with a broader risk-off sentiment in the market, triggered by U.S. President Donald Trump's threat of a 50% tariff on EU imports. This announcement rattled equities and spilled over into the crypto market, contributing to the liquidation event. The unwind followed Bitcoin’s surge to a fresh all-time high above $111,000 on 22 May before prices slipped toward $107,000 and then back to $110,000 during London trading on Friday.

Exchange data shows that Bybit bore the brunt of the liquidations, recording $197.1 million in liquidations (79% long), followed by Binance with $161.1 million and OKX with $81.1 million. Ethereum futures added another $140.2 million in margin calls. Outside of macro events, elevated funding rates and crowded bullish positioning in the run-up to the record print impacted the market. Traders are now watching whether collective funding rates flip negative, a sign of capitulation, and whether price can hold above the $105,000-$107,000 support band carved out earlier in May. Macro drivers loom, with U.S. PCE inflation data due on 30 May and further updates on the tariff dispute expected next week.