Thomas Daniels
Bitcoin’s price experienced a notable decline, falling nearly 3% to approximately $102,180, amid escalating tensions between U.S. President Donald Trump and Tesla CEO Elon Musk. This downturn resulted in the liquidation of approximately $308 million in long positions within a 24-hour period, based on data from market analytics platforms.
The broader cryptocurrency market mirrored Bitcoin’s decline, with Ethereum (ETH) dropping 7.25% to $2,462, XRP decreasing 4.35% to $2.13, and Solana (SOL) falling 5.20% to $147.86. Total liquidations across the crypto sector reached approximately $982.55 million, with long positions accounting for $891.63 million of that amount.
The market volatility coincided with a public dispute between President Trump and Elon Musk. Musk criticized Trump’s proposed global tariffs, asserting they would “cause a recession in the second half of this year.” In response, Trump declared intentions to terminate government subsidies and contracts with Musk-affiliated entities, including SpaceX and Tesla.
Concurrently, long-term Bitcoin holders have been capitalizing on profits following Bitcoin’s all-time high of $111,970 on May 22. According to on-chain analytics, these investors have been increasing sell pressure, further contributing to the recent price correction. Analysts caution that, in the absence of a compelling upside catalyst, the probability of further short-term market downturns remains elevated.
