Bitcoin (BTC) fell to its lowest price this month on June 20, triggering $464 million in liquidations across cryptocurrency markets as geopolitical jitters and heavy selling pressure rattled traders.

Bitcoin dropped to a low of $102,225, reversing the gains recorded earlier in the day after failing to break through resistance above $106,000.

Data from Coinglass shows that more than $466 million in leveraged positions were wiped out in the past 24 hours. Of this, $392.9 million came from long positions while about $73.4 million came from shorts.

Ethereum (ETH) liquidations stood at $157.8 million, outpacing Bitcoin’s $124.1 million over the past 24 hours. Over 130,736 traders were liquidated in the latest wipeout, with the largest single liquidation order occurring on Bybit’s BTCUSD pair valued at $8 million.

As of press time, Bitcoin was trading at $103,122 as bulls attempted to hold above the $102,000 support established earlier this month. Meanwhile, Ethereum was trading at $2,412 after falling to a low of $2,363.

The wider altcoin market mirrored Ethereum’s performance and fell to new monthly lows despite Bitcoin holding above $102,000.

The latest decline coincided with renewed geopolitical tensions in the Middle East, with reports of military strikes reigniting risk aversion across global markets. Equities also traded lower and lingering uncertainty could keep digital assets under pressure in the short term.

Technical analysts warned that if Bitcoin closes below the key $102,000 threshold, it could open the door to deeper losses toward $100,000 or even the mid-$90,000 range. However, the spike in liquidations and extreme negative sentiment might signal a possible short-term bottom if buyers step in to absorb the sell-off.

Bitcoin has been volatile for much of June, repeatedly testing resistance and support between $100,000 and all-time highs. Despite the recent drop, the flagship crypto remains up about 40% year-to-date, supported by strong institutional demand and new exchange-traded fund flows earlier this year.

Markets will be watching closely for signs of stabilization over the weekend, with attention focused on whether Bitcoin can hold above psychological support at $100,000, a level traders view as critical for keeping bullish momentum intact.

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Global economic tensions and trade policy uncertainties continue to influence cryptocurrency markets as Bitcoin recovers from a recent correction.

Despite the pullback, institutional interest remains strong with firms like Strategy (formerly MicroStrategy) and GameStop adding BTC to their corporate treasuries.

Technical Analysis Highlights

• The 24-hour period shows a clear bottoming pattern with strong volume support emerging around the $103,200-$103,400 zone, where buyers consistently stepped in, according to CoinDesk Research’s technical analysis data model.
• The subsequent recovery phase gained momentum after breaking above the $104,000 resistance level, with increasing volume confirming buyer conviction.
• This technical structure suggests the correction has likely completed, with the price now establishing a new support base for potential continuation of the broader uptrend.
• In the last hour, Bitcoin demonstrated a notable recovery pattern, climbing from $104,146 to $104,303, with significant bullish momentum emerging at 14:01.
• Price surged from $104,188 to $104,323 on substantially higher volume (429 BTC traded).
• The price action formed a clear consolidation range between $104,077 and $104,263 before the breakout, with key support established around $104,080-$104,090.

External References

• “Bitcoin Price Extends Losses — Is More Downside on the Horizon?”, NewsBTC, published May 30, 2025.
• “Bitcoin at Risk of Breakdown if Major Support Level Fails, Says Trader Justin Bennett – Here Are His Targets”, The Daily Hodl, published May 30, 2025.
• “Bitcoin price prediction 2025-2031: Will BTC hit $150k soon?”, Cryptopolitan, published May 31, 2025.

Crypto traders betting on a steady bitcoin

rally got a sharp reminder of headline risk from Donald Trump’s latest tariff threats.

Over $300 million worth of leveraged derivatives positions were liquidated across centralized exchanges in the past four hours, according to CoinGlass data, as crypto prices plunged following the news.

Nearly all liquidations came from long positions—traders betting on higher prices. BTC longs accounted for $107 million of the total, while Ethereum’s ether

followed with close to $87 million. Other tokens, including Solana’s SOL , dogecoin , and SUI saw liquidations ranging between $10 million and $18 million.

“Nice aggregate flush of long leverage and de-risk selling from spot,” well-followed crypto trader Skew noted in an X post early Friday. “All driven by headlines once again.”

The sell-off came after Trump proposed a 50% tariff on imports from the European Union starting next month, along with a 25% tariff on iPhones manufactured outside the U.S., reigniting fears of an escalating trade war.

As a result, BTC and major altcoins such as Ether

, XRP , and Cardano fell 3% to 4%, while smaller-cap tokens like Uniswap and SUI dropped 5% to 7% over the past 24 hours.

Crypto trader named James Wynn, who gained attention recently opening a $1.1 billion BTC long bet with 40x leverage on the Hyperliquid exchange, also slipped underwater on the massive position. Currently, the trader is sitting on $7.5 million of unrealized losses, and the position could be liquidated if BTC slips to $102,000, according to a screenshot shared on X.

Interestingly, the long liquidations came amid a recent unusual tilt toward short positions in BTC derivatives despite record prices, CoinDesk reported on Thursday.

Read more: Why Are Bitcoin Traders Aggressively Shorting as BTC Hits New Record High?

This apparent contradiction starts making sense when looking at how the market behaved in the past week. The funding rate in perpetual futures contracts ensures that the contract price aligns with the spot price by facilitating periodic payments between long and short position holders.

A negative funding rate, as observed on March 25 and March 26, means shorts are paying longs, suggesting that the contract price is below the spot price — a hallmark of bearish sentiment where traders anticipate a price decline. On March 25, the funding rate dropped to -0.040%, and it remained at this level throughout March 26, according to data from CoinGlass.

However, liquidation data tells a different story. Over a one-hour period, short liquidations totaled $14.19 million compared to just $671,540 for longs, and over four hours, shorts saw $23.50 million in liquidations against $2.28 million for longs. Short liquidations occur when the price rises, forcing short traders to buy back contracts at higher prices to cover their positions, often amplifying the upward movement.

How can a negative funding rate, indicative of bearish sentiment, align with predominantly short liquidations, which suggest a price rally? To answer this, we turn to Bitcoin’s spot price in the past week.

On March 20, Bitcoin closed at $84,175.02. The price dipped slightly to $84,053.96 on March 21 and further to $83,843.18 on March 22, but it began a steady climb thereafter, reaching $86,142.15 on March 23 and $87,512.12 on March 24.

This upward trend, a roughly 4% gain from March 20 to March 24, was accompanied by a positive funding rate, peaking at 0.050% on March 24. A positive funding rate, where longs pay shorts, reflects a contract price above the spot price, consistent with the bullish price movement and suggesting that traders were willing to pay a premium to hold long positions.

The turning point came on March 25. Bitcoin opened at $87,515.76, slightly above the previous day’s close, and reached a high of $88,564.14, continuing the upward momentum. However, the price pulled back to close at $87,424.41, a modest decline of $87.71 from March 24.

On March 26, the price opened at $87,488.28, dipped to a low of $87,075.71, but rallied to close at $88,016.46 — a gain of $592.05 from the previous day’s close. This price action confirms the occurrence of a rally — albeit with some consolidation — that would have triggered the significant short liquidations observed. This means that short traders, betting on a price decline, were caught off guard by the upward movement, leading to a short squeeze where they were forced to buy back contracts at higher prices.

However, the negative funding rate on these days suggests that the futures market, on average, remained bearish. The funding rate is calculated over a fixed period, often every eight hours, based on the average difference between the contract and spot prices. While the intraday price spikes on March 25 and March 26 drove short liquidations, the average contract price over the funding periods was likely below the spot price, reflecting a broader expectation of a price correction. This expectation may have been fueled by the price increase in the past week, which could have led traders to see the market as overbought as the price rallied.

On March 25, Bitcoin’s price ranged from a low of $86,322.37 to a high of $88,564.14 — a $2,241.77 swing. This volatility likely contributed to the disconnect between the funding rate and liquidations. The short liquidations were a reaction to the intraday rally, particularly the push toward $88,564.14. However, the subsequent pullback to $87,424.41 on March 25 and the dip to $87,075.71 on March 26 may have dragged the average contract price below the spot price, resulting in a negative funding rate.

This illustrates the timing mismatch between funding rate calculations and real-time market movements. While liquidations occur instantly in response to price changes, the funding rate reflects a longer-term average, capturing the prevailing sentiment over the funding period.

The post Short liquidations contradict negative funding rates in perpetual futures appeared first on CryptoSlate.

Strategy (previously MicroStrategy) stock has plunged more than 55% from its all-time high, fueling speculation that the company could be forced to sell off its massive Bitcoin (BTC) holdings.

With approximately 499,096 Bitcoin worth $43.7 billion, the firm has built one of the largest corporate Bitcoin reserves, but concerns are rising over its ability to sustain this strategy amid market volatility.

According to the Kobeissi Letter, the risk of forced liquidation primarily hinges on two key factors: a prolonged and significant drop in Bitcoin’s price and MicroStrategy’s ability to raise additional capital.

The company acquired its Bitcoin at an average price of $66,350 per coin. If Bitcoin were to fall well below that level and stay there, it could put pressure on MicroStrategy’s balance sheet.

However, liquidation is not an automatic process. The company’s debt agreements require a “fundamental change,” such as a bankruptcy filing or a stockholder-approved dissolution before creditors can demand repayment that could lead to a forced sale of assets.

Liquidity concerns

Strategy currently holds $8.2 billion in total debt, largely in the form of convertible notes that mature between 2027 and 2028.

Most of these notes have conversion prices below the company’s current stock price, meaning they are unlikely to trigger a near-term liquidity crisis.

With a leverage ratio of around 19%, the company’s Bitcoin holdings still significantly exceed its liabilities, reducing the immediate likelihood of insolvency.

For years, Strategy has followed a high-risk, high-reward strategy of borrowing money to buy Bitcoin. The company raises capital through convertible notes, purchases Bitcoin to increase its value, and then sells additional shares at a premium to acquire even more Bitcoin.

This approach has worked in past market cycles, allowing the company to sustain its position through Bitcoin’s price fluctuations.

Forced liquidation

The crucial question is whether Strategy can continue raising capital in the face of a declining stock price and market uncertainty.

According to the Kobeissi letter, if investor confidence erodes and the company loses the ability to issue new shares or refinance its debt, it may have to sell Bitcoin to meet its obligations.

However, for now, Strategy has time to navigate its financial challenges since most of its debt will mature several years from now,

While immediate liquidation appears unlikely, the company’s long-term stability depends on Bitcoin’s price trajectory and its ability to sustain its financing model. If Bitcoin remains stable or rebounds, MicroStrategy may be able to continue its strategy.

However, if the flagship experiences a prolonged downturn, pressure to sell could intensify, making forced liquidation a more realistic scenario.

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