A fresh political spat between Donald Trump and Elon Musk has rattled markets and led to a sharp Bitcoin price dip, triggering over $308 million in long liquidations.
📉 Bitcoin Nears $100K as Pressure Mounts
Over the past 24 hours, Bitcoin plunged from $105,915 to a low of $100,500, before recovering slightly to $102,180, per CoinMarketCap. The drop was enough to wipe out hundreds of millions in leveraged long trades, with CoinGlass reporting:
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$308M in Bitcoin long positions liquidated
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$982M in total crypto liquidations
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$891.63M of that from long positions
🔥 Trump vs. Musk Feud Shakes Investor Confidence
The turmoil began after Trump vowed on Truth Social to cancel Musk’s government subsidies and contracts, claiming it would save the U.S. billions.
Musk responded on his X platform (formerly Twitter), sarcastically stating he would begin decommissioning SpaceX’s Dragon spacecraft, the only U.S.-built system for human space travel. He later walked back the comment, but the damage was done.
The rhetoric has raised concerns of macroeconomic instability, especially as Musk criticized Trump’s proposed global tariffs, warning they could “cause a recession” in the second half of 2025.
🧊 Long-Term Holders Begin Selling Off
Adding to the pressure, long-term Bitcoin holders (155+ days) have been selling to lock in profits following BTC’s May 22 high of $111,970.
According to Glassnode:
“Without a strong upside catalyst, continued sell pressure from long-term holders raises the risk of a short-term correction.”
📉 Altcoins Join the Slide
The rest of the crypto market followed suit:
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Ethereum (ETH): -7.25%
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XRP: -4.35%
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Solana (SOL): -5.20%
This broader market weakness reflects the growing uncertainty in both crypto and traditional finance, with traders anxiously awaiting signs of Federal Reserve easing or political stability.
As long-term holders take profits and political risk shakes investor confidence, all eyes remain on whether Bitcoin can hold the critical $100,000 support level.
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