Bitcoin Trader Suffers $100 Million Liquidation as Market Tumbles Below $105,000
In a dramatic turn of events, James Wynn, a well-known trader on the Hyperliquid platform, experienced a near $100 million loss due to Bitcoin’s sharp decline below $105,000. His leveraged long positions were liquidated, resulting in the loss of 949 BTC across multiple trades. On-chain data highlights two major liquidation events: 527.29 BTC ($55.3 million) at $104,950 and 421.8 BTC ($43.9 million) at $104,150. As of the latest update, Bitcoin’s price hovers around $104,476.21 USDT, underscoring the volatility and risks inherent in leveraged cryptocurrency trading. This incident serves as a stark reminder of the market’s unpredictability and the importance of risk management in digital asset investments.
Trader Loses Nearly $100 Million in Bitcoin Liquidation Amid Market Downturn
James Wynn, a prominent trader on the Hyperliquid platform, faced a staggering loss of nearly $100 million after Bitcoin’s price plummeted below $105,000. His leveraged long positions were liquidated as the market turned, with 949 BTC wiped out across multiple trades.
On-chain data reveals two major liquidations: 527.29 BTC ($55.3 million) at $104,950 and 421.8 BTC ($43.9 million) at $104,150. A third position of 94 BTC ($10 million) fell when Bitcoin touched $106,330 on May 29. Wynn had amplified his exposure to $1.25 billion using 40x leverage earlier in May, demonstrating how aggressive strategies can backfire during volatility.
Bitcoin’s Sharpe Ratio Suggests Upside Potential Amid Delayed Altseason
Bitcoin’s risk-adjusted returns, as measured by the Sharpe Ratio, remain below historical peaks, signaling potential for further gains. The blue trend line, tracking annualized excess returns relative to volatility, sits comfortably beneath the red-dashed resistance that marked previous cycle tops in 2013, 2017, and 2021.
Alphractal’s analysis reveals a market still in its growth phase, with controlled risk levels contrasting sharply with the euphoric extremes of past bull runs. This technical positioning suggests investors face favorable conditions before reaching overheated territory.
Meanwhile, CryptoCon’s observations paint a different picture for altcoins. The anticipated Altseason—typically characterized by capital rotation from bitcoin to smaller-cap tokens—remains conspicuously absent this cycle, testing the patience of traders waiting for broader market participation.
US Bitcoin ETFs Experience $616M Outflow as BlackRock’s IBIT Leads Redemptions
Spot Bitcoin ETFs in the US faced significant net outflows totaling $616.1 million on May 30, 2025, marking a sharp reversal from recent inflows. BlackRock’s iShares Bitcoin Trust (IBIT) dominated the withdrawals, with $430.8 million redeemed—the largest single-day outflow since its launch in January 2024.
The sell-off ended IBIT’s 31-day inflow streak and surpassed its previous record outflow set in February. This follows two consecutive days of heavy redemptions, with $346.8 million exiting the ETF complex on May 29. The withdrawals contrast sharply with the $2.75 billion net inflows recorded just a week prior.
Market momentum shifted rapidly in late May as institutional investors took profits. The mid-month inflows that drove Bitcoin to new highs gave way to a wave of redemptions, with BlackRock’s fund bearing the brunt of the retreat. IBIT had previously attracted nearly $4 billion in inflows during the preceding two-week period.
Bitcoin Could Hit New Highs as M2 Money Supply Declines
Bitcoin’s price trajectory appears inversely correlated with the U.S. M2 money supply, according to analyst Merlijn The Trader. Historical patterns suggest BTC tends to rally after M2 contractions, with March 2025 flagged as a potential reversal point.
The current parallel decline in both Bitcoin and M2 mirrors previous cycles where BTC subsequently achieved record highs. Chart analysis indicates a potential price target of $128,000 if this macro relationship holds.
This monetary dynamic underscores Bitcoin’s evolving role as a hedge against liquidity fluctuations. The cryptocurrency’s fixed supply mechanics create natural tension with fiat money expansion cycles.
Bitcoin Futures Open Interest Surges to Record Highs Amid Bullish Market Sentiment
Bitcoin’s price rally has ignited a surge in futures market activity, with open interest reaching unprecedented levels. The growing number of unsettled contracts reflects robust investor confidence as capital flows into crypto derivatives.
Market dynamics suggest a self-reinforcing cycle: rising prices attract more participants, whose positions in turn provide liquidity and stability. This pattern extends beyond Bitcoin, indicating broad-based institutional interest in crypto assets.
