The crypto market plunges today due to clashes between **Elon Musk** and President Donald Trump, causing Tesla to drop 15%, Bitcoin to slide, and altcoins to plummet. The market cap fell by 4.8% in the last 24 hours, with U.S. stocks also witnessing a slight dip amid the turmoil.
Bitcoin has dropped over 4% to $100,500 and is on the verge of falling below $100,000 for the first time in a month, currently trading at $102,995. Other cryptocurrencies like Solana and SUI have also taken significant hits, with falls exceeding 7%. Ethereum decreased by 7.25%, XRP by 4.35%, and Solana by 5.2%, although they have slightly recovered since.
During the Musk-Trump conflict, the TRUMP meme coin plunged by 9.3%. Crypto-related stocks such as Coinbase fell by 4.6%, MicroStrategy by 2.4%, and mining companies like MARA, Riot, and Core Scientific also saw declines of about 5%.
Nearly $1 billion in crypto positions were liquidated within 24 hours, primarily from long bets. Bitcoin alone witnessed $341 million in daily liquidations, while Spot Bitcoin ETFs experienced $278 million in outflows as institutions withdrew their investments.
Reports from Glassnode indicate that many long-term Bitcoin holders began selling after BTC reached a record high of $111,970 in May, heightening the likelihood of a short-term price decrease. ETH futures also reported a 5.5% drop in open interest and $260 million in long liquidations.
The abrupt sell-off reflects investors’ concerns about increasing economic risks and U.S. political uncertainties affecting the crypto market. There are hints that emergency discussions are being held at the White House to assess the potential economic impact.
Despite positive news on rate cuts and rising institutional investments, political factors are casting a shadow over the market sentiment. Bitcoin is holding steady at around $100,000, but continuous long liquidations could lead to a drop to $95,000–$98,000 before finding solid support.
Traders remain optimistic that Bitcoin will reach $120,000 by the end of the year. Strong corporate purchases and low volatility are boosting confidence, with a 69% probability on the Polymarket betting platform. Corporate investors currently hold around 810,000 BTC valued at $85 billion, nearly doubling from the previous year, indicating expectations for Bitcoin’s momentum to remain robust.
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