The crypto market opened May with a stronger tone as traders reacted to short liquidations, Bitcoin ETF demand, and wider risk appetite.
Summary
- Bitcoin traded near $77,000 as short liquidations helped lift the broader crypto market.
- Bitcoin funding rates stayed negative for 46 days before a major short squeeze.
- Strategy’s STRC offers an 11.5% variable dividend, but payouts are not guaranteed.
Crypto.news reported several market-moving stories today, led by Bitcoin’s move near $77,000, pressure on short sellers, and fresh debate around Strategy’s STRC stock.
The latest updates show a market still driven by leverage and institutional flows. However, risk remains visible across derivatives, geopolitics, and dividend-linked crypto equities.
Crypto market rises as shorts get squeezed
The total crypto market cap rose about 1.2% on Friday as forced short liquidations helped lift prices. Bitcoin traded near $77,000, while Ethereum held around $2,200. Major altcoins, including XRP, BNB, and Solana, also moved higher by about 1% to 2%.
More than $150 million in crypto positions were liquidated within 24 hours. About 70% of those positions were shorts. This means many traders betting on lower prices had to close positions as prices moved higher.
Moreover, U.S. spot Bitcoin ETFs continued to record inflows above $200 million per day. These inflows supported Bitcoin even as geopolitical risk remained high due to U.S.–Iran tensions.
Tech stocks also helped improve market sentiment. Alphabet shares jumped about 10% after strong earnings from its cloud and AI businesses. Crypto-linked stocks, including Coinbase and MicroStrategy, also moved higher with Bitcoin.
Bitcoin funding drain sets up squeeze
Bitcoin funding rates stayed negative for 46 straight days, marking the longest such period since 2023. In perpetual futures markets, negative funding means short traders pay long traders to keep positions open.
The extended funding pressure may have eroded 30% to 40% of short margin before the final squeeze. More than $427 million in short positions were later liquidated as Bitcoin pushed toward the $80,000 breakout level.
The report also linked the squeeze to fresh catalysts, including Strategy’s $2.54 billion Bitcoin purchase. The move added pressure on already weak short positions.
Strategy STRC income pitch draws risk debate
Strategy CEO Phong Le promoted STRC as an income product, citing its 11.5% variable dividend. He also said he personally bought $250,000 worth of STRC.
However, Strategy’s disclosures state that dividends are not guaranteed. The company’s board can suspend payments or adjust the rate at any time. The disclosures also state there is no assurance of principal repayment.
