Crypto Liquidations Spike Following Bitcoin’s ATH, Strategy Keeps Buying

TL;DR

• Bitcoin’s rally fizzled, sparking $800 million in liquidations across BTC, ETH, and DOGE.

• REX Shares and Osprey Funds seek SEC approval for staking ETFs tied to Ethereum and Solana.

• FTX begins its $5 billion creditor payout via BitGo and Kraken, with some customers getting nearly 120% of their claim value.

• Strategy bolsters its Bitcoin stash with a fresh $427 million purchase as BTC hit $110K.

• Jack Dorsey’s Block plans to bring Bitcoin payments to Square by 2026, using the Lightning Network.

• Circle kicks off its IPO process, aiming for a $6 billion valuation with ARK Invest eyeing a stake.

Crypto Liquidations Surpass $800 Million as Bitcoin and Altcoins Retreat

Crypto markets faced a wave of liquidations on Friday as Bitcoin, Ethereum, and Dogecoin pulled back from recent highs. According to CoinGlass data, more than $827 million in leveraged positions were wiped out over the past 24 hours, with the vast majority — $747 million — coming from long positions. This sell-off reflects the broad market decline, which saw total crypto capitalization drop by 4.3%.

Bitcoin was the largest source of pain for traders, accounting for $222 million in liquidations, followed by Ethereum at nearly $122 million. Solana, XRP, and Dogecoin rounded out the top five in daily liquidations. The overall market retreat coincided with a down day for equities, as investors reacted to Thursday’s disappointing GDP report and ongoing uncertainty over the legality of President Trump’s global tariffs.

Dogecoin led the day’s losses among the top 10 digital assets, falling 9% to just under $0.20 — its lowest since May 8. Solana retreated nearly 5% to $160, XRP fell 3.3% to $2.20, and Ethereum slid 3% to $2,573. Bitcoin, which briefly touched $104,000 earlier in the afternoon, closed the day down 1.3% at around $104,730. The losses extended as the assets entered the weekend, typically characterized by low volumes. Despite reaching a record high of $111,814 last week, BTC has struggled to maintain upward momentum.

Looking ahead, analysts caution that more short-term weakness may lie ahead for Bitcoin before the next leg up. “We expect a temporary drop toward the $100,000 level before a broader move toward $130,000–$150,000, after which altcoins could take over,” said Valentin Fournier, Lead Research Analyst at BRN, in a Friday market note.

REX Shares and Osprey Funds Propose Ethereum and Solana Staking ETFs

REX Shares and Osprey Funds have filed with the SEC to introduce new ETFs that would combine exposure to Ethereum (ETH) and Solana (SOL) with staking rewards. According to their filings, each fund will invest at least 80% of net assets in the respective token, with at least 50% of holdings staked to generate yield. Anchorage Digital, a federally chartered bank and crypto custodian, will provide custody and staking support. CEO Nathan McCauley called the development a “win for consumers” and a “significant step forward in full access to the crypto ecosystem.”

This proposal comes at a time when the SEC has historically been hesitant to approve staking-based ETFs, despite greenlighting spot Bitcoin and Ethereum funds. However, the crypto industry has been engaging more actively with regulators under the new administration to clarify staking frameworks and tax obligations. Staking has grown into a major revenue stream for custodians like Anchorage and BitGo, reflecting its increasing importance to the institutional market.

If approved, the ETFs will carry annual operating expenses of 1.28% for ETH and 1.4% for SOL, with distributions taxed as dividend income. While the SEC has yet to approve even a non-staking spot Solana ETF, the recent launch of SOL futures on CME is seen as a possible precursor. Bloomberg analyst James Seyffart noted that the REX-Osprey strategy might serve as a “faster track to market,” though he suggested more efficient structures may also emerge later this year.

BitGo and Kraken Start $5 Billion in Payouts to Former FTX Users

Former FTX users have begun receiving funds from the bankrupt exchange as part of its second round of creditor payouts. According to a Friday post on X, FTX confirmed that distributions totaling approximately $5 billion are now underway. The exchange noted that customers can expect funds within one to three business days, while also cautioning users about potential phishing scams impersonating FTX or the customer portal.

This phase of the Chapter 11 reorganization plan leverages partnerships with crypto custodian BitGo and exchange Kraken to distribute payments. While the plan has drawn praise for its ability to make customers “whole” by returning the dollar value of their holdings at the time of FTX’s collapse in November 2022, some users have expressed frustration. Many would have preferred to receive payouts in crypto assets rather than fiat, given the significant rise in crypto prices since the bankruptcy filing.

The current distribution covers roughly 74% of allowed claims, with smaller claims expected to receive at least 119% of their value, including interest. Overall, the plan aims to distribute between $14.7 billion and $16.5 billion to former users, depending on claim type and market valuations. Analysts suggest these repayments could become a fresh liquidity source, potentially fueling momentum in the altcoin market as traders reallocate their capital.

Strategy Adds 4,020 Bitcoin as Price Surges Above $110K

Michael Saylor’s Strategy, the largest corporate Bitcoin holder, continued its aggressive accumulation last week, adding another 4,020 BTC as prices briefly soared above $110,000. According to the company’s May 26 announcement, the latest purchases totaled $427.1 million, acquired at an average price of $106,237 per coin between May 19 and 23. This move brings Strategy’s total holdings to an impressive 580,250 BTC, bought at an average price of $69,979 per Bitcoin.

The purchase comes despite volatility in the broader crypto market and follows Saylor’s long-standing commitment to buy Bitcoin “at the top forever.” Strategy’s stock has faced headwinds, dropping around 12% over the past week to trade near $369. The decline followed news of a class-action lawsuit filed on May 19 alleging securities fraud tied to Strategy’s Bitcoin investments. Despite the legal challenges, Strategy’s BTC accumulation highlights its conviction in Bitcoin as a long-term treasury asset, even amid short-term market uncertainties.

Jack Dorsey’s Block to Integrate Bitcoin Payments on Square by 2026

Jack Dorsey’s Block, Inc. is preparing to roll out Bitcoin payments on its Square platform, aiming to make the world’s largest cryptocurrency a mainstream payment option for merchants. Announced at the Bitcoin 2025 conference in Las Vegas, the initiative will allow Square merchants to accept Bitcoin payments through existing hardware and the Lightning Network, enabling near-instant, low-cost transactions. Merchants will also have the flexibility to hold Bitcoin or auto-convert it to fiat currency in real-time.

The phased rollout is expected to begin in the second half of 2025 and reach all eligible sellers by 2026, pending regulatory approvals. The move builds on Square’s existing Bitcoin Conversions feature, which lets merchants convert fiat sales into Bitcoin, and enhances its consumer experience by enabling easy payments via QR code scanning. Block’s Bitcoin Product Lead, Miles Suter, emphasized that the update empowers merchants by offering them additional payment options in line with the company’s vision of economic empowerment.

Meanwhile, fast food chain Stake n’ Shake showcased its experience with Bitcoin payments, revealing a 50% reduction in processing fees compared to traditional credit cards. “Bitcoin is faster than credit cards and more cost-effective,” said Dan Edwards, the company’s COO, at the conference. The firm recently began accepting Bitcoin at all of its global locations, reinforcing the growing momentum of crypto payments in everyday commerce.

Stablecoin Issuer Circle Launches IPO, Targeting Nearly $6 Billion Valuation

Circle, the company behind the popular USDC stablecoin, has officially launched its long-anticipated initial public offering (IPO) process. In a filing on Thursday, the firm said it plans to sell 24 million shares of Class A common stock — 9.6 million from the company itself and another 14.4 million from existing shareholders — with a target price range of $24 to $26 per share. This pricing would give Circle an estimated valuation of around $5.65 billion, or roughly $6.7 billion when factoring in outstanding stock options, according to Reuters.

Cathie Wood’s ARK Investment Management has expressed interest in purchasing up to $150 million worth of shares, per the filing. The offering includes a 30-day option for underwriters to buy an additional 3.6 million shares, and shares will trade on the New York Stock Exchange under the ticker symbol CRCL. Circle’s IPO prospectus was initially filed in early April. The firm’s flagship stablecoin, USDC, currently boasts a market cap of approximately $62 billion, accounting for about 27% of the global stablecoin market — second only to Tether’s 67% share.

The IPO comes at a pivotal time for the stablecoin industry, as U.S. lawmakers advance regulatory frameworks aimed at establishing clear rules for dollar-backed digital assets. Circle’s offering could also impact Coinbase, which co-founded USDC and maintains a 50% revenue-sharing agreement on the stablecoin. As stablecoins continue to be a key tool for crypto trading, cross-border payments, and even U.S. dollar internationalization, Circle’s IPO signals growing investor confidence that the sector is poised for mainstream adoption and potentially transformative growth.

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