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Stocks hit record highs while US$300M in crypto longs get liquidated: What’s next?

Stocks hit record highs while US$300M in crypto longs get liquidated: What’s next?

While major US stock indexes closed at all-time highs, capping off their best monthly performance since 2020, the digital asset space is currently digesting a sharp, painful correction in leverage. This split personality in the market suggests that while institutional capital remains confident in the earnings power of megacap technology firms, speculative traders in the crypto derivatives market are being forced to reset their risk exposure.

The narrative of the day is not one of universal fear, but rather a selective rotation in which fundamental earnings in stocks are overpowering macroeconomic headwinds, while crowded speculative positions in crypto are being flushed out by technical resistance levels.

The cryptocurrency market experienced a significant deleveraging event over the last 24 hours, characterised by a violent flush of long positions. Data indicates that approximately US$326.71 million in leveraged positions were liquidated, with the overwhelming majority of this pain concentrated on the buy side. Specifically, US$285.87 million of these liquidations came from long positions, compared with just US$40.84 million from short positions. This means that roughly 87.5 per cent of the liquidated value resulted from traders betting on price increases who were forced out of their positions as prices dipped.

The brunt of this activity hit the two largest assets by market capitalisation. Ethereum saw roughly US$308.85 million in liquidations, while Bitcoin saw about US$204.96 million across major venues such as Binance, Hyperliquid, OKX, and Bybit. Some broader estimates place the total liquidation figure closer to US$500 million over a similar window, underscoring the intensity of the sell-off.

This liquidation cascade was not driven by a fundamental collapse in the value of these assets but rather by a technical failure at key resistance levels. Bitcoin has repeatedly failed to sustain a break above the US$77,000-US$80,000 range. This area has become a formidable ceiling where profit-taking by short-term holders meets dense clusters of leveraged long risk around the US$74,000 to US$75,000 levels.

When the price rejected this resistance, market mechanics triggered a cascade of margin calls, forcing traders to sell and driving prices further into the liquidation maps. Ethereum appeared even more technically fragile, trading below key moving averages and failing to hold resistance before rolling over. The result was a classic long squeeze, in which the market punished overly optimistic leverage rather than reflecting a change in the underlying spot demand for the assets.

In stark contrast to the volatility in digital assets, the traditional stock market rallied to record highs, driven by robust earnings reports that seem to justify lofty valuations. The S&P 500 and Nasdaq Composite posted their best monthly gains in six years, fueled by the continued dominance of megacap technology firms. Alphabet led the charge with a 10 per cent surge after reporting a strong Q1 revenue beat and announcing an aggressive capital expenditure guidance of up to US$190 billion for 2026.

Amazon also contributed significantly to the rally, reporting a 17 per cent revenue increase to US$181.5 billion and seeing its cloud computing division, AWS, accelerate growth to 28 per cent. Apple shares also rose in extended trading following a positive revenue forecast. These results suggest that despite high interest rates, the biggest tech companies are generating enough cash flow to support massive investment cycles.

The enthusiasm for artificial intelligence is not without its sceptics, even within the stock market. The same theme of AI capital expenditure that boosted Alphabet caused sell-offs in other tech giants. Meta Platforms and Microsoft fell 8.6 per cent and 3.9 per cent, respectively, as investors reacted negatively to disappointing user growth and the high memory costs associated with their massive AI spending. NVIDIA also dipped four per cent due to broader scrutiny regarding AI capital expenditures rather than any company-specific bad news.

This indicates a growing bifurcation in the tech sector where investors are beginning to demand proof of return on investment for the billions being poured into AI infrastructure. The market is no longer rewarding spending for the sake of spending. It is rewarding spending that translates into revenue growth, as seen with Amazon and Alphabet.

The macroeconomic backdrop for these divergent market moves remains complex and somewhat contradictory. The Federal Reserve kept interest rates on hold for a third straight meeting as inflation remained above the three per cent mark, a level that is still uncomfortably high relative to the central bank’s targets. Despite this, the US economy grew at a 2.0 per cent rate in Q1 2026, showing resilience that supports the stock market rally.

Geopolitical tensions are adding a layer of volatility that cannot be ignored. Brent crude oil settled near US$110 per barrel after surging past US$114 amid concerns over potential US strikes on Iran and the United Arab Emirates’ announced exit from OPEC. Additionally, currency markets saw wild swings, with the Japanese yen reaching 157.14 per dollar following a suspected intervention by the Ministry of Finance. These factors create an environment where capital is expensive and global stability is fragile, which helps explain why leverage in the crypto market is so vulnerable to sudden shocks.

Looking ahead, the derivatives market metrics will be the primary indicator of where volatility might spike next. Despite the recent wipeout of long positions, total derivatives open interest remains elevated at approximately US$493.1 billion, having risen roughly two to four per cent over the last day. Perpetuals open interest alone sits near US$489.52 billion.

Crucially, average funding rates have flipped modestly negative, signalling that traders are leaning more defensively after the flush. The key dynamic to watch is whether this open interest continues to fall, indicating deeper, healthier deleveraging, or if it quickly rebuilds near resistance levels. If leverage bleeds down while prices remain stable, it sets the stage for a sustainable move higher. If high leverage and positive funding rates return too quickly, the market risks another sharp squeeze in either direction.

The current market environment suggests a period of digestion and selection. The stock market is proving that earnings power can currently override macroeconomic fears, pushing indexes to new highs even as oil prices surge and the Fed holds rates steady. The crypto market, conversely, is undergoing a necessary technical reset.

The next phase of this cycle will depend on whether the AI spending boom continues to deliver the revenue growth seen by Amazon and Alphabet, or if the costs highlighted by Meta and Microsoft begin to weigh down the broader market. Until then, the divergence between record-high stocks and flushing crypto leverage defines the risk landscape of May 2026.

 

Source: https://e27.co/stocks-hit-record-highs-while-us300m-in-crypto-longs-get-liquidated-whats-next-20260501/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

The US$75,000 line in the sand: What happens to markets if Bitcoin breaks below

The US$75,000 line in the sand: What happens to markets if Bitcoin breaks below

Markets closed with a collective sigh of caution on Tuesday as major US indices retreated and the crypto market followed suit, reflecting a broad reassessment of risk ahead of the Federal Reserve’s pivotal interest rate decision. The Nasdaq Composite fell 0.90 per cent to 24,663.80 while the S&P 500 slipped 0.49 per cent to 7,138.80 and the Dow Jones Industrial Average edged down a modest 0.05 per cent to 49,141.93.

This synchronised pullback signals more than routine volatility. It reveals a market grappling with the twin pressures of scepticism about artificial intelligence spending and geopolitical friction, all while awaiting clarity from central bank policymakers.

The trigger for Tuesday’s equity slide came from renewed doubts about the AI investment boom. A report indicating that OpenAI missed internal growth and user acquisition targets sparked a reassessment among AI-dependent firms. Oracle and CoreWeave each fell approximately five per cent while chipmakers Nvidia, Broadcom, and AMD also moved lower.

This reaction underscores a critical inflection point. Capital allocated to AI infrastructure must now demonstrate tangible returns rather than speculative promise. From my perspective, this scrutiny is healthy. It pushes the ecosystem toward sustainable innovation rather than valuation inflation driven by fear of missing out.

The market is beginning to distinguish between companies building durable AI advantages and those riding a momentum wave. That differentiation will define the next phase of technological and financial evolution.

Energy markets added another layer of complexity as oil prices surged amid renewed tensions in the Middle East. Brent crude reached US$110.75 a barrel while West Texas Intermediate traded near US$99. Disruptions in the Strait of Hormuz continue to threaten global maritime trade, injecting supply-side uncertainty into an already fragile macro picture. Higher energy costs ripple through corporate margins and consumer spending, particularly affecting logistics and transportation firms.

This geopolitical dimension reminds us that financial markets do not operate in a vacuum. They reflect real-world friction, and when trade routes are disrupted, risk premiums widen across asset classes. For investors focused on decentralized systems, this reinforces the value of resilient, borderless infrastructure that can operate despite regional instability.

Corporate earnings provided mixed signals amid the macro noise. Coca-Cola gained nearly four to five per cent after beating expectations and raising its annual outlook, demonstrating the enduring power of brands with pricing power and global reach. General Motors advanced 1.3 per cent on a strong quarterly profit beat, suggesting resilience in cyclical sectors as long as execution remains sharp.

In contrast, UPS fell three to four per cent as rising fuel costs offset underlying operational improvements, while Spotify dropped over 10 per cent due to disappointing Q2 profit guidance. These divergent performances highlight that company-specific fundamentals still matter, even when macro headwinds dominate headlines. Investors are rewarding clarity and penalising uncertainty, a dynamic that favours transparent, well-capitalised enterprises, whether in traditional or digital markets.

All eyes now turn to the Federal Reserve, which prepares to announce its interest rate decision at 2:00 PM ET today, with markets widely expecting rates to remain unchanged at 3.75 per cent. The real focus lies on Chair Powell’s 2:30 PM ET press conference for signals about the future policy path. Economic data releases, including durable goods orders and building permits, will add context, but the tone of forward guidance will drive immediate market direction.

Having analysed central bank communications for years, I believe the Fed faces a delicate balancing act. It must acknowledge persistent inflation pressures without derailing economic momentum. For crypto and decentralised finance, the stakes are equally high. A hawkish tilt could strengthen the dollar and pressure risk assets, while a more neutral stance might provide room for alternative financial systems to attract capital seeking yield and innovation.

The crypto market mirrored traditional risk assets, declining 0.96 per cent over 24 hours to a total market capitalisation of US$2.55T over 24 hours. Bitcoin led the weakness, falling 1.02 per cent to approximately US$76,344 and accounting for over 60 per cent of the market’s total decline.

This move triggered US$46.38M in long liquidations concentrated near the US$76,000-US$77,000 range, illustrating how leverage can amplify downturns during periods of macro uncertainty. The Coinbase Premium Index turned negative for the first time in three weeks, signalling waning US institutional demand.

Simultaneously, the Bank of Japan’s hawkish tilt revived fears of a yen carry-trade unwind, pressuring global liquidity conditions. These dynamics confirm that crypto has matured into a macro-sensitive asset class, correlated with traditional risk indicators and still capable of independent innovation.

Looking ahead, the near-term trajectory hinges on two key factors.

  • First, Bitcoin must hold above the US$75,000 support level to prevent a deeper test toward the US$2.46T Fibonacci support for the total market cap.
  • Second, the Federal Reserve’s messaging on April 29 will set the tone for risk appetite across equities, commodities, and digital assets.

If Powell strikes a balanced tone that acknowledges data dependence without committing to premature tightening, markets could stabilise and even rebound. Any unexpectedly hawkish surprise could extend the selloff as traders de-risk portfolios. From my vantage point, this environment favours disciplined capital allocation.

It rewards projects with clear utility, strong treasury management, and genuine user adoption over those relying on speculative narratives. The convergence of AI and blockchain, a theme I explore deeply in my work, will benefit from this clarity as resources flow toward architectures that enhance decentralisation rather than centralise control.

In conclusion, the current market posture reflects a healthy recalibration rather than a fundamental breakdown. The pullback in AI-related equities, the pressure on crypto leverage, and the cautious stance ahead of the Fed decision all point to a market digesting complex inputs and seeking equilibrium.

For those of us building the next iteration of the internet, this period of consolidation offers a strategic opportunity. It allows us to focus on technical robustness, regulatory clarity, and user-centric design without the distraction of irrational exuberance. The correlation between traditional and digital markets underscores our shared exposure to macro forces, but it also highlights the unique value proposition of decentralised systems that operate with transparency and resilience.

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Bitcoin’s US$77,000 test: What the next 48 hours mean for your portfolio

Bitcoin’s US$77,000 test: What the next 48 hours mean for your portfolio

Major US indices closed mixed, with the S&P 500 and Nasdaq Composite eking out fresh record highs. The S&P 500 rose 0.12 per cent to 7,173.91 while the Nasdaq Composite gained 0.20 per cent to 24,887.10. This selective strength tells a story of conviction in growth names rather than broad-based euphoria. The Dow Jones Industrial Average slipped 0.13 per cent to 49,167.79, and the Russell 2000 edged up a modest 0.04 per cent to 2,788.19.

Investors are navigating a narrow path, balancing strong corporate earnings potential against geopolitical friction and monetary policy uncertainty. The market’s cautious tone reflects awareness that this week carries outsized importance, with megacap tech results and the Federal Reserve’s policy decision poised to set the near-term direction.

Nvidia’s 4.01 per cent gain to US$216.61, marking its second straight all-time high, underscores the enduring appeal of AI infrastructure leaders. The broader semiconductor sector showed signs of fatigue as the iShares Semiconductor ETF snapped an 18-day winning streak, posting a 1.3 per cent decline. This rotation hints at profit-taking after a powerful run, not a loss of faith in the sector’s long-term trajectory.

Eyes now turn to the earnings calendar, with Coca-Cola reporting before Tuesday’s open and a gauntlet of tech giants, Alphabet, Microsoft, Amazon, and Meta on Wednesday, followed by Apple on Thursday, set to provide critical read-throughs on consumer resilience and enterprise spending.

Global markets mirrored this cautious stance. Asia-Pacific shares held near an eight-week high, though the ASX 200 faced pressure with futures down 0.69 per cent. Energy markets remained tightly wound, with Brent crude rising for a sixth straight day to US$108.23 a barrel and US WTI edging up to US$96.66. This persistent strength in oil directly feeds inflation anxieties just as the Federal Reserve prepares to meet.

In bonds, the 10-year US Treasury yield at 4.318 per cent signals that fixed income investors are pricing in a complex mix of growth and inflation data. Cryptocurrency markets felt the pressure, with Bitcoin falling 1.88 per cent to approximately US$76,858, a move that deserves deeper scrutiny beyond the headline.

The cryptocurrency market’s recent volatility stems from a confluence of technical and fundamental forces. A sudden US$1.2 billion sell surge on Binance triggered a flash crash below US$78,000 on April 27. This event forced US$114.78 million in BTC liquidations over 24 hours, with longs accounting for US$108.19 million of that total.

Perpetual funding rates plunged to -0.004 per cent, one of the most negative readings on record. These data points to a market that had become overcrowded with bullish leverage, and the subsequent flush, while painful, represents a healthy reset of positioning. The drop was less about a new negative catalyst and more about clearing excess speculation, creating a cleaner foundation for the next move.

This technical reset coincided with renewed macro and geopolitical pressure. Surging oil prices above US$100 per barrel, fuelled by stalled ceasefire negotiations between the US and Iran, reignited inflation fears ahead of the Federal Reserve’s policy meeting. In this environment, Bitcoin, showing a 71 per cent 24-hour correlation with gold, traded decisively as a macro asset.

Its short-term direction remains tethered to traditional market concerns over rates and liquidity. This correlation is not a permanent state but rather a reflection of current risk sentiment, with all assets weighed against the backdrop of potential monetary policy shifts and geopolitical instability.

The immediate technical test for Bitcoin is the US$77,000 support level, which coincides with the 23.6 per cent Fibonacci retracement. If buyers defend this zone, a short squeeze could propel BTC back toward the US$80,000-US$81,000 resistance. The key near-term trigger remains the Fed’s policy statement and Chair Powell’s press conference, which concludes on April 29.

A dovish tilt could catalyse a rally across risk assets, while a hawkish hold may extend the pullback toward the next key support at US$76,062. The structure appears bearish in the very short term, but a reclaim of US$78,000 could quickly shift sentiment. Watching the price reaction at US$77,000 alongside the Fed’s updated economic projections will provide critical clues.

Market pressure intensified on Tuesday, 28 April 2026, following a sophisticated hack targeting infrastructure linked to Kelp DAO. The theft of approximately 116,500 rsETH tokens, valued at around US$300 million, triggered a massive run on the leading lender Aave, resulting in a US$9 billion liquidity drain. This event rattled investor confidence and amplified the prevailing risk-off sentiment.

Bitcoin traded around US$76,852, down 1.79 per cent for the day, having dropped on 4 of the past 5 days but still up 19 per cent since the start of the conflict in late February. Ethereum consolidated near US$2,321, facing resistance at US$2,360 as retail traders exited while larger holders accumulated. The Fear and Greed Index at 33, reflecting Fear, captures the significant caution now pervading the market.

Broader regulatory and institutional developments continue to shape the landscape. The CLARITY Act is advancing, with Senator Cynthia Lummis announcing it will head to markup in May, a potential step toward clearer digital asset rules in the United States.

Simultaneously, the US Treasury updated sanctions to include new crypto addresses tied to the Central Bank of Iran, highlighting the ongoing intersection of geopolitics and digital finance. Despite the volatility, institutional demand shows resilience, as evidenced by BlackRock’s Bitcoin ETF options reaching record open interest. This signals that sophisticated capital views current weakness as a potential entry point, providing a stabilising counterweight to short-term panic.

These events underscore a critical inflection point for digital assets. The market is maturing, but it remains susceptible to both technical leverage flushes and external macro shocks. The Kelp DAO exploit, while severe, tests the resilience of decentralised finance protocols and the industry’s capacity for coordinated response.

The massive liquidity drain from Aave demonstrates the interconnectedness of the ecosystem, where a failure in one component can rapidly propagate throughout it. The ongoing institutional adoption, exemplified by record interest in ETF options, suggests a growing recognition of Bitcoin’s role as a strategic asset class, distinct from its speculative trading persona.

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j