The crypto market saw over $831 million in forced liquidations in the last 24 hours. Long traders lost more than $765 million due to sudden market volatility.
Traders in Bitcoin (BTC) and Ethereum (ETH) leveraged markets were hit hardest by the increased market uncertainty. Bitcoin’s fear and greed index decreased from 62% to 57%, indicating a shift to a bearish market sentiment.
The broader stock market faced a bearish trend following the fallout between U.S. President Donald Trump and tech mogul Elon Musk. Musk’s call for Trump’s resignation and impeachment created short-term uncertainty in the market.
The disagreement between the two over a spending bill showed a significant deficit. Trump criticized Musk for not opposing him earlier, highlighting the benefits of the bill and the potential consequences if it doesn’t pass.
With tensions rising between Trump and Musk, concerns over a market downturn grew. Musk warned that slow negotiations on Trump’s tariffs could lead to a recession in the latter half of 2025.
If a U.S. recession occurs later in 2025, gold prices are expected to outperform the stock market. Given Bitcoin’s reputation as digital gold, the crypto market may see a bullish recovery in the second half of the year.
Note: Investments carry market risks. Please invest carefully. We do not accept responsibility for any financial losses.
