Bitcoin Falls Below $77,000 as Crypto Liquidations Surge Across Market
Bitcoin fell below $77,000 on May 17, extending a sharp decline that began a day earlier and triggering widespread forced liquidations in the crypto derivatives market. According to exchange market data, Bitcoin traded near $76,824 against USDT late on May 17, capping a brutal two-day slide that wiped out roughly $80 billion from the total cryptocurrency market value.
The downturn intensified as macroeconomic pressure weighed on investor sentiment. U.S. Producer Price Index data came in 6% above expectations on May 16, which reduced hopes for near-term interest rate cuts and pushed investors away from risk-heavy assets. Meanwhile, spot Bitcoin ETFs added to the pressure, with BlackRock’s IBIT recording $136 million in outflows as part of a wider $290 million withdrawal day that snapped a six-week inflow streak. Altcoins also declined, with XRP, Solana, and Dogecoin posting losses between 3.5% and 6%.
Massive Liquidation Wave Hits Leveraged Traders
Market data from CoinGlass showed that between $580 million and $700 million in leveraged long positions were liquidated over 24 hours from May 16 to 17. Notably, around 95% of the forced closures affected traders betting on rising prices. Bitcoin accounted for nearly $189 million in liquidations, while Ether followed with $151 million. In total, almost 154,000 traders were caught in the selloff.
The largest single liquidation involved a $21.59 million BTCUSDT position on Bitget. As prices dropped further, automated liquidations accelerated the decline, creating a cascading effect across the derivatives market.
Strategy Filing Raises Fresh Market Concerns
Investor nerves were further shaken after a May 15 SEC filing from Strategy, formerly known as MicroStrategy, revealed plans to repurchase approximately $1.5 billion in 0% convertible senior notes due in 2029. In the filing, Strategy stated it “expects to fund the repurchases with available cash reserves, proceeds from sales of securities under its at-the-market offering program, and/or proceeds from the sale of bitcoin”.
This marked the first time the company formally listed Bitcoin sales as a possible funding option in a debt-related filing. Strategy currently holds about 818,334 BTC, acquired at an average cost of roughly $75,537 per coin. Although CEO Phong Le has said any sale would only happen if it were “accretive to Bitcoin per share,” prediction markets now place the chances of a Bitcoin sale before year-end above 90%.
Analysts also noted that Bitcoin had already shown weakness below the $80,000 level despite temporary optimism following the U.S. Senate’s advancement of the CLARITY Act on May 15. With the $75,000 support zone now under close watch, liquidation models suggest another $7.64 billion in long positions could be erased if Bitcoin drops another $5,000.
