Bitcoin's Weekend Whiplash: $107K Spike Followed by $670M in Liquidations Amid Surging ETF Inflows

19. May 2025 Posted by Laurent C. on News

May 19, 2025 — Bitcoin briefly soared above $107,000 late Sunday before rapidly retreating by nearly 4% early Monday, unleashing over $670 million in crypto liquidations. Yet institutional demand remained steady, with spot Bitcoin ETFs pulling in more than $600 million last week.

Volatility Strikes as Weekend Liquidity Falters
Bitcoin’s sudden ascent to $107,020 around 22:00 UTC on May 18 marked its highest point since February. However, the rally unraveled within hours. By 02:00 UTC, the price had dropped to near $103,000, bottoming at $102,300 before stabilizing near $103,200 as the European session opened.

The dramatic swing was fueled by short liquidations followed by aggressive profit-taking in a thinly traded market. Data from CoinGlass confirmed over $670 million in liquidations across major crypto futures—$465 million from longs and $224 million from shorts—underscoring how vulnerable weekend markets remain to exaggerated moves.

Binance, notably, recorded its lowest trading volume of the year during the chaos.

ETFs and Treasuries Soak Up the Dip
Despite the market turbulence, institutional demand showed no signs of slowing. Spot Bitcoin ETFs brought in $608 million in net inflows during the week ending May 18, with BlackRock’s iShares Bitcoin Trust alone adding $839 million—offsetting outflows from smaller issuers.

Meanwhile, Strategy (formerly MicroStrategy) continued its aggressive accumulation, revealing a $1.3 billion BTC purchase (13,390 coins), boosting its total holdings to 568,840 BTC.

In parallel, open interest across crypto futures reached a year-to-date high of $70 billion, suggesting that leverage is building—echoing dynamics seen in the second phase of the 2021 bull cycle.

Macro Risks Resurface
The broader economic landscape added pressure to crypto sentiment. Moody’s downgraded its outlook on U.S. sovereign debt, pushing 30-year Treasury yields back above 5% and rekindling concerns about America’s fiscal trajectory.

Why This Matters

  • Sentiment Check: Every move above $100K reflects institutional appetite post-halving.

  • Structural Strength: Ongoing ETF inflows and corporate treasury participation offer dip-buying support.

  • Leverage Trap: Thin weekend books continue to punish aggressive traders with outsized squeezes and crashes.

What to Watch Next

  • Can ETF flows stay above $500 million weekly? A drop-off could test Bitcoin’s $100K support.

  • Will the ballooning open interest trigger another wave of forced liquidations?

  • Do US fiscal developments continue to feed into Bitcoin’s safe-haven narrative—or raise risk across markets?

Bitcoin's latest roller coaster proves the bull market may be intact, but the road remains treacherous—especially on weekends.