Bitcoin’s $1.25B Liquidation: The Epic Saga of Supply Shock and Whales 🐋💰

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  • In a stunning display of resilience, Bitcoin has absorbed a $1.25B long liquidation with all the grace of a cat landing on its feet (or perhaps a particularly agile walrus).
  • BTC’s structure remains as intact as a well-preserved ancient artifact, hinting at a potential supply squeeze that could make even the most stoic of economists raise an eyebrow.

Ah, Bitcoin [BTC], the digital currency that refuses to be outdone, flexing its serious muscle like a bodybuilder at a vegan convention despite the chaos swirling around it. 💪

Now, cast your mind back to the post-“Liberation Day” dump in early April, when Bitcoin decided to shed 10.5% that week, closing at a mere $76,191 and tagging a five-month low. It was a time of great despair, or at least a time when people were mildly annoyed.

Fast forward to now, and even with macro headwinds back in play (thanks to fresh tariff noise that sounds suspiciously like a bad sitcom), a 3.79% intraday pullback barely registers. In fact, according to AMBCrypto, this might just be the tip of the iceberg, or perhaps the tip of a very large and confused iceberg that forgot where it was going.

With another high-leverage long wiped out and the market absorbing it like a sponge at a particularly enthusiastic water fight, Bitcoin’s resilience could be setting the stage for a classic supply squeeze. 🎉

The long squeeze that didn’t break BTC

No doubt, that intraday dip shook out a ton of leveraged longs, much like a dog shaking off water after a swim.

On-chain data from CryptoQuant flagged a sharp liquidation event: 2,560 BTC, or around $275 million, were squeezed out during the swift drop from $111,699 to $107,270 on the 23rd of May. It was a drop that could make a rollercoaster look like a gentle stroll.

Notably, it was the first major long squeeze in over a month, dragging BTC down 3.79% in a single session. The message is clear: in high-volatility conditions, stacking 20x–40x longs is a textbook recipe for liquidation, or as I like to call it, “financial gymnastics.” 🤸‍♂️

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But if you thought that was enough to scare the big players, think again. Lookonchain data spotted a whale aping in with a monster 40x long with 11,588 BTC worth $1.25 billion, which was set to be liquidated at $105,108. Yes, a whale! Not the kind that sings, but the kind that makes you question your life choices.

As BTC ranged tightly between $106k and $109k, the whale opted to close manually, injecting a fresh wave of 11k+ BTC into the market. And yet, despite the size of that unwind, BTC didn’t flinch. Could this be stealth accumulation at work, setting the stage for a looming supply shock? Only time will tell, and possibly a few overly caffeinated analysts.

Bitcoin’s bull case builds

May’s data highlights a brewing supply squeeze, but it’s important to break down the numbers carefully, like a mathematician at a pie-eating contest.

Spot ETFs gobbled up 52,000 BTC, effectively locking those coins away from circulation. Exchange reserves continued to decline near the $107K price level, reducing the supply of BTC available for trading. In total, approximately 70,000 BTC exited exchanges this month alone, further tightening liquidity. It’s like watching a magician pull coins out of thin air, except the coins are disappearing instead of appearing. 🎩✨

Combine that with sovereign players stacking big – the UAE is stacking both on the buy and mining front, and Singapore’s 68% BTC allocation signals serious conviction. It’s like a game of Monopoly, but with real money and fewer plastic hotels.

And the real eye-opener? BlackRock’s iShares Bitcoin Trust (IBIT) alone added 44,000 BTC to its holdings this month, highlighting massive institutional demand quietly piling in, like a cat sneaking up on a laser pointer.

So, the $1.25 billion long wipeout? It barely made a dent, much like a mosquito on a rhinoceros.

In summary, Bitcoin appears to be quietly building a high-conviction base above $100k – one that could serve as the launchpad for the next major leg up, or at least a very enthusiastic leap into the unknown.

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2025-05-25 13:16