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Bitcoin Price Dropped to $74,530, While Traders Who Opened Long Positions Suffered $106 Million in Losses
On Wednesday, Bitcoin’s price showed downward momentum, falling below the $75,000 mark and trading at $74,570 at the time of writing. This decline led to a loss of nearly 3% of its weekly value and once again pushed its market capitalization below $1.5 trillion.
Key Takeaways
- On May 27, Bitcoin fell below the $75,000 mark as Glassnode noted a reduction in inflows into exchange-traded funds (ETFs).
- Bitstamp data showed that BTC fell by 3% over the week, leading to the liquidation of leveraged long positions worth $115.3 million.
- Polymarket traders estimated the probability of a U.S.-Iran agreement at 30% ahead of the May 31 deadline.
On-Chain Analytics Indicators Signal Weakening Momentum
For the second day in a row, Bitcoin showed downward momentum, dropping below the $75,000 mark even as major Wall Street indices hovered near record highs. According to Bitstamp data, the leading cryptocurrency plunged to an intraday low after spending most of the previous 24-hour trading session above $75,500.
The sharpest decline began around 8:44 a.m. Eastern Time, when the digital asset fell from $76,800 to $74,637 in less than two hours. Although it briefly recovered to just above $75,300 an hour later, Bitcoin ultimately lost momentum, retreating to an intraday low of $74,530. The latest decline pushed Bitcoin’s market capitalization below the $1.5 trillion mark for the second time this month, while its weekly loss widened to nearly 3%.
Bitcoin’s short-term weakness is closely linked to fundamental changes highlighted in Glassnode’s weekly on-chain report. The data indicates that Bitcoin’s overall upward momentum is weakening beneath the surface, restrained by softer spot demand and a sharp deterioration in net inflows into U.S. spot exchange-traded funds (ETFs).
Glassnode analysts noted that although the asset remains structurally resilient thanks to the defensive positioning of long-term holders, on-chain indicators such as the realized profit-to-loss ratio suggest that capital inflows are weakening. This is keeping the market significantly below levels historically associated with aggressive bull rallies. Instead, Bitcoin is clearly tracking global risk appetite rather than decoupling from macroeconomic markets.
Wednesday’s price decline triggered accelerated derivatives liquidations, leading to the liquidation of $115.3 million worth of leveraged Bitcoin positions — 15% more than the more than $100 million recorded the previous day. Long positions bore the brunt of the volatility, accounting for nearly $106 million in Bitcoin liquidations. This “washout” underscores Glassnode’s warning about increasingly crowded long positioning in the futures market. Across the broader cryptocurrency market, total liquidations on May 27 reached $334 million, with long positions accounting for $285.6 million of that amount.
Stocks Stabilized Amid Falling Energy Prices
Unlike Bitcoin, global stock markets remained mostly unchanged, with South Korea’s Kospi index being the only exception, rising by more than 180 points, or 2.25%. Analysts attribute this stock-market recovery to a significant decline in energy prices and growing optimism surrounding diplomatic developments in the Middle East. At the time of writing, Brent crude had fallen to just above $95 per barrel, while West Texas Intermediate (WTI) dropped below $90 per barrel.
The fall in oil prices followed reports that diplomatic negotiations between the United States and Iran may be entering their final stage, easing fears of an escalation of the regional conflict and continued supply disruptions.
However, despite growing optimism about a possible diplomatic breakthrough, participants in decentralized prediction markets remained skeptical. On Polymarket, traders priced the probability of a U.S.-Iran agreement by May 31 at only 30%. Similarly, on Kalshi, the probability of the Strait of Hormuz being fully reopened by July 1 stood at 36%.
See also: "A Negative May Points to the Risk of a 10% Decline in June"
