Crypto Bulls Suffer $600M Liquidations Following Bitcoin’s Slide Under $104K

Bitcoin Falls Below $104K, Sparking $600M in Long Liquidations Amid Escalating U.S.-China Tariff Dispute

Bitcoin dipped below the $104,000 mark on May 31, triggering over $600 million in forced liquidations, primarily hitting bullish futures traders. This liquidation wave marks the largest since February, as markets reacted to renewed trade tensions between the U.S. and China.

Data from Coinglass indicates total liquidations reached $688 million within 24 hours, with longs accounting for nearly 90% of the losses. The biggest individual liquidation was a $12.25 million BTC/USDT order on OKX. Bitcoin futures liquidations led the sell-off with $153 million, followed by Ethereum ($122 million), Solana ($33 million), XRP ($30 million), and Dogecoin ($22 million).

The downturn came after U.S. President Donald Trump announced a doubling of tariffs on Chinese steel and aluminum imports, accusing China of violating an earlier tariff truce. This development intensified fears of a renewed trade war, unsettling risk assets globally, including cryptocurrencies.

China urged the U.S. to retract the tariff hikes and adhere to the prior agreement, while noting that most Chinese steel exports were already subject to tariffs. Despite this, the announcement shook markets and reignited geopolitical uncertainties.

The broader crypto market tumbled as Ether dropped nearly 4%, XRP and Solana lost between 4% and 5%, and Dogecoin plunged over 8%. Traditional markets were also affected, with equities and commodities experiencing declines.

Meanwhile, derivatives activity has surged, with Bitcoin futures open interest up 51% since April and options volume rising 126%, showing increased leverage demand. However, major Bitcoin holders have shifted from accumulation to net selling, sending coins back to exchanges in a sign of profit-taking.

Market analysts suggest the liquidation cascade may indicate oversold conditions and potential for a price rebound, though ongoing trade tensions and volatile derivatives markets are likely to keep investors cautious in the short term.