Bitcoin Drops Below $105K as $644M in Long Liquidations Shake Crypto Markets

Bitcoin experienced a sharp pullback on May 31, 2025, falling below the $105,000 level and triggering a massive wave of leveraged liquidations across the cryptocurrency market. The sell-off wiped out over $644 million in long positions within 24 hours, leaving traders scrambling as the weekend approached with little signs of recovery.

TL;DR

• Bitcoin dropped below $105,000, settling near $104,644 with a 1% intraday loss
• Total crypto market liquidations reached $668 million, with longs accounting for the vast majority
• Over 251,000 traders were liquidated in 24 hours, including a $12.25 million single-position wipeout on OKX
• The broader crypto market capitalization fell 4.3% to $3.27 trillion
• Analysts predict a possible further dip toward $100,000 before the next rally toward $130,000–$150,000

Liquidation Cascade Hits Overleveraged Bulls

The sell-off unfolded rapidly on Friday as Bitcoin, which had touched an all-time high of $111,814 just days earlier, failed to maintain momentum above $105,000. According to CoinGlass data, leveraged positions worth more than $827 million were wiped out over the rolling 24-hour period, with $747 million of those coming from long positions alone.

Bitcoin bore the brunt of the liquidation event, accounting for $222 million in wiped-out positions. Traders who had been riding the bullish wave with high leverage were caught off guard when support levels broke. The largest single liquidation—a staggering $12.25 million—occurred on the OKX exchange on a BTC/USD pair.

A notable casualty of the carnage was a Bitcoin whale operating with 40x leverage who was fully liquidated, with their account balance reduced to just $16.28. The incident served as a stark reminder of the risks inherent in trading with extreme leverage, even in a market that has been predominantly bullish throughout 2025.

Altcoins Suffer Alongside Bitcoin

The pain was not confined to Bitcoin. Ethereum recorded $95.41 million in long liquidations as its price slipped 3% to around $2,573. Solana saw $37.70 million in longs liquidated, falling nearly 5% to $160. XRP experienced $12.88 million in liquidations while declining 3.3% to $2.20.

Dogecoin led the day’s losses among top-10 digital assets, plunging 9% to just under $0.20—its lowest level since May 8. The meme coin’s sharp decline reflected broader risk-off sentiment that extended well beyond the core crypto assets.

According to CoinMarketCap data at the time, the total cryptocurrency market capitalization dropped by 4.3%, settling at approximately $3.27 trillion. Trading volume across major exchanges declined by 18%, suggesting that the sell-off was driven more by forced liquidations than by a fundamental shift in market sentiment.

Macro Headwinds Add Pressure

The crypto pullback coincided with broader weakness in traditional markets. Investors in equities were digesting a disappointing GDP report released the previous day, along with mounting uncertainty over the legality of President Trump’s global tariff policies. The combination of macroeconomic concerns and crypto-specific leverage unwinding created a perfect storm for the sell-off.

Despite the dramatic numbers, some analysts view the liquidation event as a potentially healthy reset for the market. A cascade of liquidations might suggest a market turning point, where a price reversal could be imminent due to an overreaction in market sentiment. Historically, large-scale liquidation events have often preceded short-term bounces as forced selling exhausts itself.

What Analysts Expect Next

Valentin Fournier, Lead Research Analyst at BRN, offered a measured outlook: “We expect a temporary drop toward the $100,000 level before a broader move toward $130,000–$150,000, after which altcoins could take over.” This view aligns with the pattern seen throughout Bitcoin’s current cycle, where sharp corrections have typically preceded renewed rallies.

Meanwhile, institutional interest continues to grow. Strategy (formerly MicroStrategy) bolstered its Bitcoin treasury with a fresh $427 million purchase as BTC traded near $110,000 earlier in the week. The company’s relentless accumulation suggests that long-term holders remain unfazed by short-term volatility.

Bitcoin was trading at $104,638 at press time, with Ethereum at $2,529, XRP at $2.18, and Solana at $156.64, according to CoinMarketCap historical data.

Why This Matters

The May 31 liquidation event underscores a critical dynamic in the current crypto cycle: while Bitcoin’s long-term trajectory remains strongly bullish, the path upward is punctuated by violent leverage cleanses that can wipe out undercapitalized traders in hours. The $644 million in liquidations serves as both a warning about excessive leverage and a potential signal that the market is resetting for its next move higher. With institutional accumulation continuing unabated and analysts projecting targets as high as $150,000, the current dip may represent a buying opportunity for those with sufficient risk tolerance and patience.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.