Bitcoin Drops 5% Triggering $185 Million in Long Liquidations

Coin WorldTuesday, May 27, 2025 1:57 am ET
1min read

During a recent market pullback, Bitcoin (BTC) experienced a modest dip, falling from nearly $112,000 to $106,600. This price drop triggered a cascade of liquidations, primarily affecting late long positions. The downward move led to approximately $185 million in long position liquidations. Late longs, which are leveraged long positions entered into after a price rally, are particularly vulnerable to sudden price drops, leading to rapid liquidations when support levels fail. The first major liquidation cluster occurred around $110,900, wiping out over $97 million in long positions. A second wave of liquidations followed when the price dipped below $109,000, resulting in an additional $88 million in leveraged longs being liquidated within hours.

While short-term holders faced heavy losses, long-term holders responded differently. Rather than being shaken out, they seized the opportunity to accumulate more Bitcoin. CryptoQuant analyst Amr Taha stated, "Short-term over-leveraged traders have been thoroughly shaken out, while long-term holders have quietly seized the opportunity of the market reset." Long-term investors are taking advantage of this selling wave to increase their positions and accumulate more Bitcoin for the long term. The long-term holder (LTH) realized capitalization has now exceeded $28 billion for the first time since April 2025. This strategic accumulation during moments of market stress reflects the deep conviction of LTHs. The analyst added that with the LTH realized cap now surpassing $28 billion, it’s clear that long-term investors are using this period of forced selling to increase their exposure and accumulate more Bitcoin for the long run.

In a separate analysis, it was noted that Bitcoin recently achieved its highest weekly close ever. This milestone underscores the strong bullish sentiment shared among long-term investors, who continue to anticipate higher prices. Several market observers have pointed out that the current rally appears more sustainable than previous ones, with fewer signs of euphoria. Analysts argue that Bitcoin’s ongoing upward momentum has not exhibited overheating, suggesting a healthier market structure. Moreover, technical indicators suggest ambitious price targets for Bitcoin. For example, an analyst has projected that BTC could soar as high as $300,000 during this bull cycle. Institutional interest also remains strong, further reinforcing confidence in BTC’s long-term potential.