Crypto Liquidations Top $1 Billion as Bitcoin Slides Below $70,000
More than $1 billion in leveraged crypto positions were liquidated over a 24-hour period as Bitcoin fell below the $70,000 mark for the first time in three weeks, triggering a cascade of forced selling across derivatives exchanges. According to data from CoinGlass, over 280,000 traders were liquidated, with the largest single liquidation order — a $22 million BTC-USDT position on Binance — occurring in the early hours of Tuesday morning.
The sell-off began late Monday after stronger-than-expected U.S. manufacturing data dampened expectations of near-term Federal Reserve rate cuts. Bitcoin dropped from $74,200 to as low as $68,800 before recovering slightly to $69,500 by Tuesday afternoon. Ethereum fell 8.5% to $3,420, while Solana and Cardano posted double-digit percentage losses.
What Triggered the Liquidation Cascade
The ISM Manufacturing PMI for May came in at 52.7, significantly above the 50.8 consensus estimate, signaling that the U.S. economy remains resilient. This data point pushed the 10-year Treasury yield above 4.6% and strengthened the U.S. dollar, creating immediate headwinds for risk assets including cryptocurrencies. Bitcoin, which had been trading in a narrow range between $72,000 and $76,000 for most of May, broke below key support levels within hours.
The speed of the decline was amplified by record-high open interest in Bitcoin futures, which stood at over $38 billion before the sell-off. As prices fell, long positions were systematically liquidated, creating a feedback loop that accelerated the downward movement. Binance, Bybit, and OKX accounted for over 70% of total liquidations.
Market Sentiment and Outlook
The Crypto Fear & Greed Index plunged from 68 (Greed) to 31 (Fear) in a single day, marking the sharpest sentiment reversal since the August 2025 yen carry trade unwind. However, spot Bitcoin ETF flows remained positive through the turbulence, with net inflows of $150 million on Monday, suggesting that institutional investors are viewing the dip as a buying opportunity.
"The macro environment is driving this, not crypto fundamentals. When the market digests the rate outlook, we expect a swift recovery." — Head of Research at a major crypto trading firm
Analysts are now watching the $67,000 level as the next key support. A breach below that could trigger another wave of liquidations. On the upside, reclaiming $72,000 would likely restore bullish momentum.
Source: CoinGlass, CoinDesk, The Block, and Binance Research.