BTC's Brutal Dip Triggers $560M Liquidation Bloodbath

Hold onto your hats, folks! Bitcoin just took a wild ride from its all-time high of $111K, leaving a trail of liquidations in its wake. We're talking a jaw-dropping $560M in long and short positions wiped out in a flash!

Last Friday, May 23rd, was a day of reckoning for 160,905 traders on crypto exchanges. The total value of positions that got erased? A staggering $563.20 million. Ouch!

Now, let's break it down: $418.63 million of those liquidations were longs, while $144.35 million were shorts. The biggest single liquidation order? A whopping $9.53 million BTC-USDT bet on OKX. That's gotta hurt!

Bitcoin traders felt the brunt of it, with $153.04 million in total liquidations. Ethereum traders weren't far behind, losing $144.19 million. In both cases, it was the longs who got hit the hardest, thanks to the crazy volatility.

Bitcoin and Ethereum Take a Hit from Trump's Trade War

In the last 24 hours, Bitcoin rollercoastered from its peak of $111,970 down to the $107,000 range before bouncing back to $109,231. Meanwhile, Ethereum took a dive from a daily high of $2,731 to a low of $2,508 before recovering to $2,574.

What caused this wild ride? None other than President Donald Trump threatening new tariffs on the EU and Apple. When trade tensions escalate, risk assets like Bitcoin and Ethereum take a beating as traders get spooked and shy away from risky bets in a potential low-growth environment.

But here's the thing: Bitcoin has been holding up like a champ throughout this trade war. It even surpassed its previous high back in November, right around the time of Trump's inauguration. Ethereum, on the other hand, hasn't been as resilient, trading well below the $4000 level it hit in November.

So, what's keeping Bitcoin afloat? It's all about that "digital gold" narrative, baby! Traders, including the big institutional investors, are starting to see Bitcoin as a hedge against inflation and a counter-cyclical asset that thrives in volatile markets. It's like the crypto equivalent of a safe haven in a storm!