Bitcoin (BTC) Hits New All-Time High – Liquidations Slam Both Long and Short Traders

Date: Wed, May 21, 2025 | 06:25 PM GMT

The cryptocurrency market has staged a powerful comeback in recent weeks, but today’s action took things to a whole new level. Bitcoin (BTC) surged to a fresh all-time high of $109,767, marking a major milestone for the world’s largest digital asset. However, what should’ve been a moment of celebration quickly turned into a chaotic bloodbath for traders on both sides of the market.

Source: Coinmarketcap

Bitcoin’s Meteoric Rise—and Sudden Pullback

Bitcoin’s price action has been nothing short of explosive. A potent mix of institutional inflows, spot ETF adoption, and a surprisingly positive U.S.-China trade agreement helped fuel a relentless rally over the past month. That rally reached a crescendo today as BTC pushed past its previous high, setting a new all time high at $109,767.

But the excitement didn’t last long.

Within hours of hitting the peak, BTC sharply retraced to $106,000, erasing about 3.5% from its high. While still historically elevated, the sudden drop caught many traders flat-footed—especially those riding on high leverage.

And it wasn’t just Bitcoin feeling the heat.

Ethereum (ETH), which had briefly touched $2,616 earlier in the day amid growing optimism around Web3 development and increased on-chain activity, also slipped. ETH now trades at around $2,480, down 5.3% from its daily high.

Liquidations: A $230 Million Shakeout

According to data from CoinGlass , the last four hours saw approximately $225 million in crypto liquidations. Of that, about $114 million came from long positions, while $110 million were from shorts.

Source: Coinglass

The near-even split highlights the sheer indecision in the market. Traders were divided on whether Bitcoin would blast higher or reverse — and the volatility punished both camps.

These kinds of mass liquidations are not uncommon during key breakout moments, but the size and speed of this event reflect just how heated the current market environment has become.

What’s Next for Bitcoin and Ethereum?

Following this dramatic price action, both BTC and ETH may enter a period of consolidation near current levels. With Bitcoin now holding above $106,000 — not far from its new all-time high — bulls will be watching closely for signs of stability and renewed momentum.

If BTC can find footing here, another leg higher could be on the horizon. But caution is warranted. Volatility remains high, and any negative macro headlines could easily trigger another round of liquidations.

For now, the market appears to be digesting the move, punishing leveraged positions and potentially resetting before the next trend emerges.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research and assess your risk tolerance before investing in cryptocurrencies.