The cryptocurrency market experienced a dramatic downturn on May 30, with Bitcoin plunging below the $105,000 mark and triggering widespread liquidations across leveraged positions. At the time of writing, Bitcoin was trading at approximately $105,809 per coin, reflecting a 3% decline over the past 24 hours.
This sharp correction wasn't isolated to Bitcoin. Major altcoins also took heavy hits: Ethereum and Ripple (XRP) both dropped nearly 5%, Dogecoin fell by 10%, Cardano (ADA) declined over 7%, and Solana (SOL) lost more than 6% of its value in the same period.
Market-Wide Liquidations Surge
According to data from Coinglass, over 210,000 traders were liquidated in the last 24 hours, with total losses reaching $711 million**. The largest single liquidation occurred on OKX’s BTC futures market, amounting to **$12.7 million—a stark reminder of the risks associated with high-leverage trading in volatile markets.
👉 Discover how top traders manage risk during market crashes and protect their portfolios.
Such massive liquidations reflect growing anxiety among investors amid shifting macroeconomic signals and regulatory uncertainty.
Why Did the Crypto Market Crash?
Several macro factors contributed to this sudden market reversal:
- U.S. tariff policy volatility: Recent back-and-forth trade measures have rattled global financial markets.
- Weaker-than-expected inflation data: While lower inflation might seem positive, it has raised concerns about underlying economic weakness.
- Uncertain economic outlook: Fears of slowing growth and delayed rate cuts have made investors more risk-averse.
These forces combined to trigger a broad sell-off not only in digital assets but also in traditional safe-haven markets.
Gold and Silver Also Retreat
On May 30, precious metals followed crypto into a downward spiral. Spot gold dropped nearly 1%, falling to $3,287.50 per ounce, while silver also saw notable declines. This rare synchronized pullback suggests that even assets traditionally viewed as inflation hedges are being reevaluated in the current macro climate.
The Rise Before the Fall: Bitcoin’s Record High
Just days before the correction, Bitcoin hit an all-time high. On May 22, BTC surged past $110,000**, pushing its total market capitalization above **$2.1 trillion—surpassing Amazon to become the fifth most valuable asset globally, trailing only gold, Microsoft, NVIDIA, and Apple.
This rally was fueled by a wave of institutional adoption and regulatory progress.
Regulatory Milestones Boost Confidence
A significant development came when the U.S. Senate passed a procedural motion for the GENIUS Act (Guidance for Emerging New Innovation Using Stablecoins Act) of 2025. This legislation aims to establish a clear regulatory framework for dollar-backed stablecoins, paving the way for broader financial integration.
With clearer rules on the horizon, experts anticipate increased participation from banks, fintech firms, and payment processors in the digital asset space.
Coinbase Joins S&P 500: A Landmark Moment
Another major catalyst was Coinbase Global’s inclusion in the S&P 500 index on May 19. As one of the largest U.S.-based crypto exchanges, this move marks a pivotal moment in mainstream financial acceptance.
Index inclusion means that every fund tracking the S&P 500 now automatically holds shares in Coinbase—effectively giving millions of traditional investors indirect exposure to the cryptocurrency ecosystem.
👉 Learn how institutional adoption is reshaping the future of finance and creating new opportunities.
Wall Street Weighs In: Jamie Dimon’s Contradictory Stance
Even long-time skeptics are adjusting their positions. Jamie Dimon, CEO of JPMorgan Chase, recently announced that his bank will now allow clients to buy Bitcoin—though he personally remains critical of the asset.
“I don’t think you should smoke,” Dimon said, “but I defend your right to smoke. Similarly, I defend your right to buy Bitcoin.”
His comments highlight a growing trend: even those who question Bitcoin’s fundamentals acknowledge its market presence and investor demand.
Digital Gold or Speculative Bubble?
The debate over Bitcoin’s true nature continues to divide experts and investors alike.
The Case for “Digital Gold”
Supporters argue that Bitcoin is evolving into digital gold—a scarce, decentralized store of value resistant to inflation and government control. With a fixed supply cap of 21 million coins, increasing institutional custody solutions, and growing global adoption, many see BTC as a long-term hedge against monetary instability.
Moreover, its performance outpacing major tech stocks and traditional assets reinforces this narrative.
The Skeptics’ Viewpoint
Critics remain unconvinced. They point to Bitcoin’s extreme volatility, energy consumption, and past use in illicit activities as reasons to treat it with caution. Some still view it as a speculative bubble waiting to burst—especially after rapid price spikes followed by steep corrections like the one seen on May 30.
Yet despite criticism, Bitcoin continues to gain legitimacy in financial circles.
Frequently Asked Questions (FAQ)
Q: Why did Bitcoin drop below $105,000?
A: The drop was triggered by a mix of macroeconomic concerns—including uncertain U.S. tariff policies, soft inflation data, and economic slowdown fears—leading to risk-off sentiment across markets.
Q: How many people were liquidated in the recent crash?
A: Over 210,000 traders faced liquidations within 24 hours, with total losses exceeding $711 million due to leveraged positions being wiped out.
Q: Is Bitcoin still considered a safe-haven asset?
A: While some investors treat Bitcoin as "digital gold," its high volatility means it doesn’t always behave like traditional safe havens such as gold—especially during sudden market stress.
Q: What impact did Coinbase joining the S&P 500 have?
A: It significantly boosted credibility for the crypto industry, allowing passive index funds to invest in a major crypto-native company and increasing mainstream exposure.
Q: Can retail investors safely trade Bitcoin with leverage?
A: Leverage amplifies both gains and losses. Given Bitcoin’s volatility, inexperienced traders should exercise extreme caution or avoid leveraged trading altogether.
Q: Could Bitcoin reach new highs after this correction?
A: Many analysts believe so. With ongoing institutional adoption, regulatory clarity improving, and limited supply, long-term fundamentals remain strong despite short-term swings.
While the recent selloff serves as a sobering reminder of crypto’s inherent volatility, it also underscores the maturation of the ecosystem. From regulatory milestones to Wall Street integration, Bitcoin is no longer a fringe experiment—it's becoming a permanent feature of the global financial landscape.
Whether you see it as digital gold, a speculative asset, or something in between, one thing is clear: Bitcoin’s influence is only growing.