Bitcoin’s $10 billion liquidation wave catches why the AI boom is hurting crypto
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Bitcoin’s drop toward $60,000 last week exposed how quickly a shift in investor appetite can turn into forced selling when leverage has been rebuilt beneath the surface of the crypto market.
Key facts
- By May 31, hedge funds had cut their share of BlackRock’s iShares Bitcoin Trust, or IBIT, to about 19% from around 29%
- He noted that futures open interest had dropped to about $31 billion in February after reaching a high of roughly $70 billion
- Bitcoin is -2.74% over the past 24 hours and currently sits at rank # 1 by market cap
- The largest cryptocurrency by market value fell nearly 14% last week, triggering almost $10 billion in liquidations of long futures as traders who had bet on higher prices were pushed out
Summary
01 Bitcoin fell nearly 14% last week, triggering almost $10 billion in long-futures liquidations as leverage unwound. 02 AI-linked stocks, private tech deals, and expected IPOs are drawing capital away from Bitcoin, weakening demand at a crowded moment. 03 The selloff may have cleared leverage, but open interest and funding still need to stabilize before Bitcoin can confirm a bottom. The largest cryptocurrency by market value fell nearly 14% last week, triggering almost $10 billion in liquidations of long futures as traders who had bet on higher prices were pushed out of the market.