Bitcoin Falls Below $104K, Sparking $600 Million in Long Liquidations Amid Renewed U.S.-China Tariff Tensions
Bitcoin’s price dipped under the $104,000 mark on May 31, triggering over $600 million in liquidations primarily affecting bullish traders, marking the largest sell-off since February. The drop comes as escalating trade disputes between the U.S. and China roil global markets.
Data from Coinglass shows total liquidations in the last 24 hours reached $688 million, with nearly 90% on long positions. The largest single liquidation hit $12.25 million on the BTC/USDT pair at OKX. Bitcoin futures liquidations led at $153 million, followed by Ethereum at $122 million. Other cryptocurrencies including Solana, XRP, and Dogecoin saw significant forced closures as well.
The sell-off was prompted by U.S. President Donald Trump’s announcement of a 50% tariff hike on Chinese steel and aluminum, accusing China of violating a recently agreed tariff truce. This move unsettled markets worldwide, putting pressure on risk assets such as cryptocurrencies.
China responded by urging the U.S. to correct its actions and resume negotiations. Despite existing tariffs already affecting much of China’s steel exports, the tariff increase rattled investors and heightened concerns over deteriorating U.S.-China relations.
The broader crypto market also weakened: Ether fell nearly 4%, XRP and Solana dropped between 4% and 5%, while Dogecoin plunged over 8%. This sell-off extended beyond crypto, affecting equities and commodities as well.
Meanwhile, derivative markets remain active, with Bitcoin futures open interest surging 51% since April, and options volume up 126%, signaling a strong appetite for leverage. However, large Bitcoin holders have shifted toward selling, transferring coins back to exchanges, a classic sign of profit-taking.
Analysts warn that the sharp wave of liquidations could signal an oversold market primed for a reversal. Still, with trade tensions and market volatility on the rise, investors should prepare for continued turbulence in the near future.
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