Bitcoin Retreats After Brief Surge Above $107K; $600M in Derivatives Liquidated

Bitcoin slipped on Monday after an early spike above $107,000 triggered a wave of derivatives liquidations and profit-taking. The world's largest cryptocurrency was trading at $103,200, down 1.4% by 09:50 ET, retreating from a session high near $107,000—its strongest level since January 2025.

The move wiped out over $600 million in crypto derivatives positions, with a classic short squeeze followed by swift selling. Real-time insights from the Cryptocurrency Daily data help track such abrupt price movements and liquidation volumes across major exchanges.

Bitcoin briefly gained over $2,500 in under an hour late Sunday, driven by thin liquidity and algorithmic buying at key technical levels—factors that often amplify volatility in weekend trading.

Macro Tailwinds and Institutional Demand Drive May Gains

Bitcoin has gained over 11% in May, supported by easing U.S.-China trade tensions and broader optimism around macro conditions. Subdued U.S. inflation prints last week raised hopes for a Fed rate cut later this year, weakening the dollar and increasing the appeal of alternative assets like Bitcoin.

Adding to the bullish sentiment, Strategy Inc. (NASDAQ:MSTR) made headlines by acquiring 13,390 BTC for $1.34 billion, a move signaling growing institutional adoption of Bitcoin as a strategic asset. The trend is trackable via the Cryptocurrency Historical Data API, offering multi-session price and volume context for strategic analysis.

In another major development, Coinbase (NASDAQ:COIN) joined the S&P 500 index, marking a milestone for the digital asset ecosystem's integration into mainstream finance.

Regulatory Shifts and Risk-Off Flows Add Momentum

A more favorable regulatory outlook under SEC Chair Paul Atkins, along with growing uncertainty around U.S. fiscal health—especially after Moody's downgraded U.S. sovereign credit—has boosted Bitcoin's status as a hedge against economic instability.

Just today, Strategy Inc. further deepened its Bitcoin exposure, purchasing 7,390 BTC for $764.9 million at an average price of $103,498 per token, according to a regulatory filing.

As macro and institutional drivers continue to converge, market watchers will closely monitor Bitcoin's ability to challenge its all-time high of $109,228, a level it came within striking distance of earlier today..