Cryptocurrency market crash causes $627M liquidation spike
There were a number of reasons for the market's fall
The cryptocurrency market crash on Friday triggered a wave of liquidations. According to CoinGlass data at the time of writing, 217,501 traders were liquidated within 24 hours, with total losses amounting to $627.55 million.
The largest single liquidation occurred on OKX — a BTC-USDT position worth $12.74 million. Most of the liquidated positions were long — totaling $557 million, compared to just $72 million in short positions.
Liquidation Heatmap. Source: Coinglass
Cryptocurrencies retreated following a strong Bitcoin rally that recently pushed it to an all-time high. The price of Bitcoin has dropped to $105,500, down from its ATH of $111,900.
Reasons behind the market decline
According to Crypto.news, Bitcoin’s price often experiences a slight pullback after reaching a record high or key milestone. Analysts cite several additional factors behind the market downturn:
Profit-Taking by Major Traders: During major events like Bitcoin-2025, many users engage in news-driven buying or selling.
Seasonal Trends: Bitcoin and altcoins declined ahead of June, typically the second-worst month for crypto after September. On average, Bitcoin returns -0.35% in June, as many investors take summer vacations.
Regulatory Uncertainty: After one court ruled Trump’s tariffs illegal, another reinstated them, raising concerns about trade policy.
Federal Reserve Policy: Signs indicate the Fed may hold interest rates at 4.50% for an extended period. Meeting minutes released this week show officials are content with a wait-and-see approach as they assess the inflationary impact of tariffs.
China’s Crackdown: According to Binance, China’s authorities plan to ban individual cryptocurrency ownership, prompting another wave of token sell-offs.
As Bitcoin fell by 1.6%, many altcoins suffered double-digit losses. The day’s top losers included:
Raydium (-14.6%)
Fartcoin (-13.8%)
Ethena (-13.7%)
Arbitrum (-12.7%)...and others.
As we wrote, Bitcoin ETF outflows hit $358M amid price decline
