Cryptocurrency bulls saw over half a billion dollars lost in liquidations after the cryptocurrency market printed red flags all over. The cumulative market capitalization of digital assets fell more than 2% over the past 24 hours to hover around $2.53 trillion.
Bitcoin has seen $55 billion of its market value depart amid a new sell-off. The price of Bitcoin fell by 3% while the price of Ethereum fell by 4%. This comes as the US Securities and Exchange Commission (SEC) delayed a planned exemption framework linked to the trading of cryptocurrency token shares. However, Kevin Warsh was also sworn in as the new Chairman of the Federal Reserve.
BTC decline wipes out bulls
According to CoinGlass data, more than 124,000 traders were liquidated in the past 24 hours. The total liquidation amounted to $574.28 million. The largest liquidation on Bitget reportedly occurred through the perpetual pair BTCUSDT. The value of this request was estimated at approximately $32.4 million.
About 90% of those liquidated positions (about $524 million) were bullish longs. This indicates that traders were expecting the cryptocurrency market to continue to recover, but it went the other way.
Bitcoin price It fell directly to the level of $75,000, resulting in the liquidation of only $214 million. The data shows that liquidated bets worth $209 million (97%) turned out to be long positions. BTC has been dealing with mixed emotions lately. Its price is down 3% in the last 30 days, but has remained up about 7% in the last 60 days.
The broader cryptocurrency market also weakened alongside Bitcoin. Ethereum, Solana, and XRP all fell more sharply as traders reduced risk exposure ahead of the weekend. The move comes amid an increasingly fragile macro backdrop.
Cryptopolitan I mentioned Kevin Warsh was officially sworn in as the new Chairman of the Federal Reserve. He was appointed by US President Donald Trump. However, Jerome Powell will reportedly remain at the Fed as governor. During the swearing-in ceremony, Warsh said he would lead a “reform-minded Fed” while learning from past successes and failures.
BTC traders face $2 billion liquidation risk
Markets are also reacting to rising tensions related to Iran. Reports indicate that Trump is preparing for possible new military strikes against Iran. This comes after he canceled Memorial Day weekend plans.
Several US military and intelligence officials have reportedly canceled travel plans and put them on standby. This has raised fears that another geopolitical escalation could hit global markets.
Bitcoin continues to hover within a high-leverage trading zone. Analysts indicate that it may lead to greater forced liquidations. CoinGlass’ liquidation heatmaps show that if Bitcoin’s price drops below approximately $73,786, it could trigger more than $1.29 billion in leveraged long liquidation positions. A break above nearly $80,995 would activate about $1.22 billion in bearish short positions, she added.
Derivatives analysts describe this setup as a liquidation “minefield.” This is where relatively small price movements can lead to quickly successive liquidations on both sides of the market. Bitcoin has been warned that a break below $70,346 would put more than $2 billion in bullish positions at risk.
