Price Of Bitcoin: Long Liquidations Surge Past $100 Million, Amid Pullback

After noting a new all-time high at $12,000, the price of Bitcoin saw bulls retreat on Friday, paving the way for a wave of profit-taking. As a result, the derivatives segment yielded a significant surge in losses among traders holding long positions.

The ratio of Bitcoin longs vs shorts widened once again but this time longs were the victims. On-chain data revealed that $125.2 million in long positions were liquidated in the last 24 hours. On the other hand, shorts were roughly a quarter of that amount at $30 million.

Shorts were previously on the liquidation end of the spectrum as BTC price pushed to new highs. The surge in long liquidations on Friday was courtesy of a profit-taking induced pullback which saw price pullback below $108,000, albeit briefly. Historic tops AKA price discovery historically demonstrated elevated levels of profit –taking.

More Than $632 Million Pulled out of Bitcoin on Friday

Spot flows provided evidence of substantial liquidity removed from the market with spot outflows surging past $632.2 million. This was the second highest daily spot outflow observed in the last 3 weeks.

The spiking outflows in the last 24 hours marked the first major sell-off since the price of Bitcoin clocked a new ATH at $112,000. In addition, the same spike triggered the massive long liquidations.

Bitcoin open interest recently peaked above $80 billion which was also its record high. However, the same observation underscored BTC’s highly leveraged nature during the week as market confidence made a comeback.

But could the liquidations signal a pivot for the cryptocurrency? The massive sell-off was characteristic of past price outcomes after surging to new highs. In other words, price could still continue pushing deeper into price discovery unless another major negative event triggers more FUD.

Such concerns were not farfetched given how quickly the market sentiment shifts. Speaking of shifts, tariff war tantrums might be on track to comeback as early as June. Recent reports revealed that President Trump had plans to slap the European Union with 50% tariffs.

Although Bitcoin showed some resilience and even decoupled from its correlation with the S&P500 in April, it still gave in to prevailing sentiment. Will a similar outcome occur this time as Trump adds fuel to the trade war flame?

Institutions Continue to Pile in But Will They Shift Guard?

The crypto market’s recent decoupling from the S&P500 could underscore a chance that Bitcoin and altcoins may continue rallying and disregard tariff war jitters. Such an outcome was possible considering the save haven status that BTC recently gained as debt-related concerns continued mounting recently.

Luckily, smart money moves continued to offer insights regarding the market’s potential direction in the short term. For example, institutions pumped $934 million into Bitcoin ETFs on Thursday, which was the highest observed inflows in in more than 2 weeks.

The institutional liquidity flows confirmed rising confidence among investors. A reflection of the prevailing market sentiment which jumped into extreme greed for the first time in months.

Data revealed that demand from whales remained positive in the last 24 hours. This was a sign that whales were still optimistic about Bitcoin potentially soaring higher.

While bullish sentiment remained, it was also worth noting that President Trump’s plan to push for aggressive tariffs against the EU may trigger another major selloff.

The price of Bitcoin was already up by almost 0.8% at the time of observation. Whale and institutional activity were previously revealed to have the biggest impact on prices. Their activity over the next few days may offer insights into what to expect in June. In the meantime, short term confidence remained high.

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