Crypto traders faced a major wake-up call as Bitcoin led a $560 million liquidation wave following its retreat from an all-time high of $111,000. The top digital asset’s swift fall triggered cascading effects throughout the crypto market, underlining the risks and volatility inherent to blockchain-based investments.
On May 23, futures liquidations swept through the sector, affecting over 160,900 traders with positions worth more than $563 million wiped out. Notably, long positions made up the lion’s share at $418.63 million, while short liquidations totaled $144.35 million. The single largest order closed was valued at $9.53 million on a BTC-USDT pairing.
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Bitcoin holders absorbed the heaviest losses, counting $153.04 million in liquidations. Ethereum followed closely with $144.19 million cleared—underscoring how DeFi tokens and major altcoins remain susceptible to short-term sentiment swings. The dominance of long position liquidations reflects continued investor optimism, even in high-volatility environments.
Macro Tensions and Tariff Threats Shake Crypto Markets
Analysts observe that the current volatility is magnified by geopolitical headlines. Bitcoin fell sharply from a record $111,970 to as low as $107,000 before a modest recovery. Ethereum dropped similarly, from $2,731 to $2,508, before rebounding above $2,570. Both moves trailed a turbulent session after U.S. President threats of fresh tariffs on Apple and the European Union, rattling risk assets globally.
Given crypto’s reputation as a high-beta asset, such trade war sabre-rattling often sparks uncertainty. In low-growth macro conditions, market participants tend toward caution, unwinding risky bets across blockchain markets. However, Bitcoin’s enduring strength is noteworthy, having exceeded its previous peak during another key political moment last November. Ethereum, in contrast, still trades well below its all-time high, highlighting diverging confidence for leading coins.
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Digital Gold Narrative Gains Traction
Experts point to Bitcoin’s growing role as “digital gold.” Institutional investors increasingly see it as an inflation hedge capable of weathering high-volatility cycles. Its resilience, even amid political headwinds or macro shocks, is driving further mainstream adoption for this alternative asset.
Meanwhile, Ethereum and select DeFi tokens are still working to regain investor trust after prolonged drawdowns. Traders seeking to optimize for such swings should consider the best crypto wallet solutions to ensure security and ease of trading during turbulent times.
Looking ahead, market analysts warn that if macro tensions intensify, further volatility in crypto assets is likely. Active monitoring and strategic asset management will be essential, whether for seasoned pros or blockchain newcomers.
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