Bitcoin pullback sparks $1B in long liquidations, KAIA and AB rally over 40%

Bitcoin bulls failed to reach a new all-time high this week, as fresh bearish macro developments triggered a late-week pullback.

By late Asian trading hours on Friday, the total cryptocurrency market cap had dropped over 5% to $3.38 trillion, retreating from a three-week high set on June 11. 

Market sentiment also declined, with the Crypto Fear and Greed Index falling 7 points to 53 on the same day, exiting Greed territory and returning to neutral levels.

Most top-ranking altcoins surrendered their early-week gains, with only a few maintaining double-digit profits by the end of the week.

Why did crypto crash?

The week began with strong bullish momentum driven by optimism around renewed trade negotiations between the United States and China.

Bitcoin briefly surged past $110,000 as risk appetite returned to global markets.

However, sentiment quickly reversed as geopolitical instability in the Middle East escalated. Israel launched a large-scale military operation targeting Iran’s nuclear infrastructure and other strategic assets, prompting fears of broader regional conflict.

Israeli Prime Minister Benjamin Netanyahu confirmed that strikes would continue until perceived threats were neutralized, raising the risk of prolonged hostilities.

The uncertainty surrounding potential retaliatory actions from Iran and its allies triggered a broad sell-off across risk assets.

Cryptocurrencies, which had rallied earlier in the week, were hit particularly hard as investors moved to de-risk their portfolios.

Bitcoin fell as much as 5.6% to $102,700 on Bitstamp before slightly recovering to around $105,000 by late Friday.

The downturn coincided with a surge in futures market liquidations, which totaled $1.15 billion over the past 24 hours.

Long positions accounted for $1 billion of that amount, marking the largest daily liquidation event since February 25. In contrast, short liquidations were limited to $93 million.

Bitcoin led the sell-off, recording $448.1 million in liquidations on June 13 alone. The scale of forced selling accelerated the price drop and amplified panic across the market, fueling further downside pressure.

Despite the late-week correction, the broader macro backdrop remains supportive of long-term crypto upside. 

Easing tensions in U.S.–China trade relations have revived investor confidence in global risk markets, while recent U.S. inflation data showed continued cooling, reinforcing expectations of monetary policy stability.

Core CPI for May came in below forecasts, reducing pressure on the Federal Reserve to raise interest rates further.

This has kept real yields stable and preserved appetite for risk-on assets, with Bitcoin still trading near historical highs and above the key support level at $104,000 despite short-term volatility.

What’s next for Bitcoin?

The outlook for Bitcoin remains mixed as analysts weigh the implications of this week’s volatility. 

Bitcoin dropped to $102,800 on Friday after geopolitical tensions escalated, but quickly rebounded to over $105,500, suggesting buyers remain active near key support.

That support came at the 50-day Simple Moving Average (SMA), a level that has historically served as a launchpad for major rallies.

A similar setup occurred in October 2024 when Bitcoin fell 8.8% during a prior Israel–Iran conflict, only to recover and gain over 80% by year-end.

Given the structural similarities, some traders see the current correction as a healthy consolidation phase within a broader uptrend backed by improving macro signals.

Further reinforcing this view, on-chain data shows an uptick in Bitcoin accumulation. 

Bitcoin also briefly entered oversold conditions on Friday, which technical traders view as a potential launch point for a short-term recovery.

A sustained rebound could set the stage for a renewed push toward record highs.

Another bullish theory comes from analyst Merlijn The Trader, who flagged a recurring fractal tied to liquidity grabs. 

In his chart analysis, Bitcoin appears to be following the same breakout sequence as before, clearing key resistance levels and trendlines just as it did ahead of its late 2024 rally past $100,000 amid Middle East tensions.

In both cases, the price dipped briefly to flush out leveraged traders before surging higher.

Other analysts, including widely followed trader Crypto Caesar, share a similar view and anticipate a short-term rebound.

Nevertheless, one veteran has warned that Bitcoin’s recent rejection at $110,000 may signal the end of its local uptrend.

In a series of posts on X, John Bollinger, the creator of the Bollinger Bands indicator, stated that the current price action confirms a “Three Pushes” pattern, typically seen at the end of sustained uptrends.

Bollinger outlined how Bitcoin’s recovery from April lows near $75,000 unfolded in three distinct surges, each hitting the upper Bollinger Band and followed by brief consolidations.

He noted that this structure has now been completed, and the failure to hold above all-time highs may usher in either a broader reversal or a prolonged consolidation phase.

Traders watching for continued upside may need to account for a potential cooling period in the weeks ahead.

When writing, Bitcoin was trading at $105,648, up 1% over the past week. 

Altcoins

Altcoins faced significant volatility this week, with total market capitalisation peaking at $1.43 trillion before sliding to $1.2 trillion.

The Altcoin Season Index climbed to 30 on June 10, marking a short-lived momentum shift, but has since eased back to 25.

The top gainers for the week were as follows:

Kaia

Kaia (KAIA) has recorded a 45% increase over the past seven days, with its price reaching approximately $0.155 and its market cap rising to $940 million at the time of writing.

The rally is primarily attributed to two significant developments. 

First, the Kaia team announced plans to introduce a Korean won–pegged stablecoin, a move that aligns with South Korea’s evolving regulatory framework under the proposed Digital Asset Basic Act, which supports the issuance of domestic stablecoins.

Second, the network recently completed the native integration of Tether’s USDT, enhancing stablecoin functionality and improving liquidity within the Kaia ecosystem.

AB

Over the past week, AB (AB) has surged 40%, lifting its market capitalization to approximately $760 million as of the latest reporting.

AB’s strong performance this week followed its listing on Binance Alpha, Binance’s early-access platform, where a $1 million prize pool for trading activity boosted user engagement.

Listings on Gate.io and Bitget soon followed, adding further momentum. 

The project also launched the AB Charity Foundation, introducing a philanthropic element to its ecosystem.

Uniswap

Uniswap (UNI) held onto 23% gains, trading at $7.49 at the time of writing, with a market cap of $4.71 billion.

The key catalyst behind Uniswap’s recent bullish momentum was the launch of its new Smart Wallet.

The rally was further supported by comments from SEC Commissioner Paul Atkins, who indicated the agency is considering an “innovation exemption” to ease regulatory barriers for DeFi platforms. 

The announcement has been seen as a potential catalyst for a renewed DeFi market cycle, positioning Uniswap to benefit as a leading protocol in the space.

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