Bitcoin Holds Steady Amid $1.25B Long Liquidation
Key Takeaways
- Bitcoin withstood a $1.25 billion long liquidation without significant price losses.
- On-chain data indicates a growing supply shortage.
- Institutional demand – particularly through ETFs – continues to rise.
- A potential supply shock may be on the horizon.
Massive Long Liquidation – Bitcoin Remains Stable
On May 23, a major long position in the Bitcoin market was liquidated. A single trader had built a leveraged position worth $1.25 billion – using 40x leverage. When the price dropped from approximately $111,700 to $107,270, the position was closed. In total, 11,588 BTC were dumped onto the market.
Despite this massive movement, Bitcoin’s price remained relatively stable. The intraday correction was only 3.79%. For a liquidation of this size, this is a sign of market strength. It shows that the market is currently capable of absorbing large sell-offs – an indication of a potential accumulation phase.
What Is a Long Squeeze?
A long squeeze occurs when many traders bet on rising prices using high leverage. If the price suddenly drops, these positions are automatically liquidated. This leads to additional selling pressure, which can drive the price down further. In this case, however, the effect was limited.
Declining Exchange Reserves Point to Supply Shock
Data from CryptoQuant shows that around 70,000 BTC were withdrawn from centralized exchanges in May. This means fewer Bitcoin are immediately available for trading. At the same time, demand is rising – especially from spot ETFs (exchange-traded funds that hold physical Bitcoin).
BlackRock’s iShares Bitcoin Trust (IBIT) alone purchased 44,000 BTC in May. Other institutional players, such as Singapore and the United Arab Emirates, are also increasing their holdings – either through purchases or mining activities.
Spot ETFs Driving Demand
Spot ETFs play a central role in the current market dynamics. They buy actual Bitcoin and hold it long-term. Unlike futures ETFs, they directly impact the available supply. In May, approximately 52,000 BTC were removed from the market through these funds. These coins are no longer available for short-term trading.
You should read that too:
-
Asian Slots – The Best Asia-Themed Online Slot GamesReading time: ~ 3 minutes
-
Viking Slots: Best Norse-Themed Slot Games
Reading time: ~ 3 minutes
-
Versus Odds B.V. Casinos
Reading time: ~ 3 minutes
-
Easter Slots – Best Easter-Themed Slot Games
Reading time: ~ 3 minutes
-
Monster Slots: Best Monster-Themed Slot Games
Reading time: ~ 3 minutes
Institutional Investors Show Confidence
The activity of major market participants indicates long-term confidence in Bitcoin. Notably, Singapore holds around 68% of its crypto allocation in BTC. The United Arab Emirates is also actively investing – both through purchases and the expansion of mining capacity.
Our Assessment
The recent $1.25 billion long liquidation had little impact on the Bitcoin market. This points to a robust market structure. At the same time, available supply is decreasing due to ETF purchases and exchange outflows. Conditions for a supply shock – a sudden shortage amid high demand – are intensifying.
If you’re investing in Bitcoin or considering it, now is a good time to closely monitor the market structure. The combination of stable demand and decreasing supply could lead to new price momentum in the medium term.
Sources
- CryptoQuant
- Lookonchain
| Wagering requirements | 35x bonus |
| 35x free spins winnings | |
| Minimum deposit | €20 |
| Maximum bet | €5 |
| Bonus validity | 30 days to claim |
| 14 days to wager / 7 days for free spins |
- There is no maximum bonus amount.
- 10 Free Spins per day over ten (10) days on Gates of Olympus or Book of Ra Deluxe.
| Wagering requirements | 40x bonus |
| 40x free spins winnings | |
| Minimum deposit | 0.0005 BTC |
| Maximum bet | 0.00004 BTC |
| Bonus validity | 30 days after registration |
| 14 days (1st), 7 days (2nd), 1 day (3rd) |
- To get the bonus, enter the bonus code before the deposit.
- Minimum deposit: 0,07 BCH • 0,4 LTC • 233 DOG • 45 XRP • 0,01 ETH • 20 USDT • 69 ADA • 0,05 BNB • 184 TRX • 20 USDC.
- Maximum bet: 0.007 BCH • 0.0009 ETH • 0.04 LTC • 23 DOGE • 2 USDT • 4 XRP • 18 TRX • 7 ADA • 0.005 BNB • 2 USDC • 2 EUR • 2 USD.
- Free spins are provided in batches of 25 per day.
- Free spins are credited on the Gamebeat slots: Max Miner (1st), Book of Elixir (2nd) and Odin’s Tree (3rd).
| 1st deposit | 120% up to $500 + 100 Free Spins |
| 2nd deposit | 100% up to $300 + 100 Free Spins |
| 3rd deposit | 150% up to $500 + 100 Free Spins |
| 4th deposit | 100% up to $300 + 100 Free Spins |
| Wagering requirements | 45x deposit + bonus |
| 40x free spins winnings | |
| Minimum deposit | $10 (1st) |
| $15 (2nd-4th) | |
| Maximum bet | $5 per round |
| Bonus validity | 30 days to claim, 7 days (1st-4th) |
| 7 days for free spins |
- You must complete the registration and verification process, including a valid email or phone number, to qualify for this bonus.
- You must select the desired bonus during the deposit process.
- There is a maximum withdrawal limit of $10 from winnings derived from free spins.
Advertising transparency