More than $1.5 billion in Bitcoin long positions have been liquidated since May 25, triggered by a broader selloff after U.S.-Israel strikes on Iran. The heightened geopolitical tensions have fueled risk-off sentiment across global markets, hitting speculative assets like Bitcoin particularly hard.
Analysts describe this as a forced deleveraging event, not a gradual correction. The massive liquidation wave underscores the market's acute sensitivity to geopolitical shocks and the fragility of high-leverage positions.
Current prediction markets show odds at 1.6% for Bitcoin falling below $66,000 on May 30 and only 1.5% for surpassing $78,000 by June 1. The intense selling pressure supports bearish outlooks for the near term.
All eyes remain on Middle East developments, with any further escalation likely to amplify downside risks. Traders are also watching for statements from BlackRock and the SEC that could sway crypto market sentiment.