Bitcoin hovers near $106,000 as Ethereum dips; leveraged liquidations hit $219 million.
The cryptocurrency market posted mild losses on Tuesday, May 20, following losses the previous day, as geopolitical tensions between the U.S. and China resurfaced.
Bitcoin (BTC) gained 1% to $106,000, while Ethereum (ETH) dipped 1% to $2,495. Solana (SOL) rose 1.5%, climbing to $168, and XRP traded flat at $2.35.
The total cryptocurrency market capitalization is down by 1.1% in the past 24 hours to around $3.43 trillion. Leveraged liquidations amounted to $219 million during the same time period, according to CoinGlass. ETH led liquidations with $80 million, followed by BTC at around $51 million.
Meanwhile, spot Bitcoin exchange-traded funds (ETFs) recorded approximately $667 million in inflows on May 19, while Ethereum ETFs attracted nearly $14 million in inflows, according to SoSoValue data.
Experts attribute the market volatility to rising geopolitical tensions, particularly between the U.S. and China. On Monday, Beijing accused Washington of undermining their trade deal after the U.S. warned companies against using Chinese chips.
Experts say the dispute has renewed concerns about the stability of the trade truce between the top two world economies and could continue to pressure global markets.
“Volatility remains elevated, and large players continue to extract profits from both sides, often farming funding rates and arbitraging between markets,” said Dr. Kirill Kretov from CoinPanel. “I would not be surprised to see a sharp dip designed to shake out weak hands and liquidate overleveraged longs.”
Dr. Kirill added that this scenario could set the stage for a more sustainable breakout. Looking ahead, investors will likely be keeping a close eye on comments from the Federal Reserve for insights into its next moves.
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