Bitcoin has dropped below $72,000 amid significant liquidations and MicroStrategy's first bitcoin sale, revealing market vulnerabilities.
Bitcoin has dipped below $72,000, pressured by significant liquidations in the market. In the last hour, around $93.69 million in crypto positions were liquidated, with a staggering 95% of these being long positions, according to CoinGlass.
Bitcoin accounted for a majority of the liquidations at $72.34 million, while Ethereum followed with $7.77 million. Over the past 24 hours, total liquidations reached $402 million, involving 135,585 traders. Long positions made up $275 million of this total, compared to $127 million in short positions.
This wave of forced selling coincided with Bitcoin's fall from intraday highs exceeding $74,000, dropping to approximately $72,250 by the end of Asian trading. This represents a 2.1% decline for the day, as reported by CoinDesk.
The downturn was exacerbated during European trading hours and persisted into the U.S. session, following a filing from MicroStrategy (MSTR). The 8-K filing disclosed the company's initial bitcoin sale, involving 32 coins sold for $2.5 million at an average price of $77,135, with the funds earmarked for preferred stock distributions.
Prior to these developments, Bitcoin showed signs of vulnerability, particularly as U.S. spot bitcoin ETFs experienced significant outflows. Between May 15 and May 29, a record $2.97 billion was withdrawn over ten sessions, according to SoSoValue. Additionally, rising Brent crude prices, which surpassed $93 per barrel due to stalled ceasefire discussions between the U.S. and Iran, contributed to a reduced appetite for market risk.
