Bitcoin wobbles as Political Feud Fuels Market Jitters
Bitcoin’s price experienced a notable dip today, falling to $101,579. this represents a 3.5% decrease in the last 24 hours and a 4.5% drop over the past week. The decline is attributed to the liquidation of nearly $1 billion in cryptocurrency positions across major exchanges.
Market Turmoil: A Perfect Storm?
- Price Drop: Bitcoin fell to $101,579.
- 24-Hour Change: Down 3.5%.
- Weekly Change: Down 4.5%.
- Liquidation: Nearly $1 billion in crypto positions liquidated.
Adding fuel to the fire, an escalating political clash between Elon Musk and U.S. President Donald Trump has injected uncertainty into the market, prompting investors to reduce their exposure.
Nearly $1 Billion Liquidated Amidst Political Unrest
Data reveals notable liquidations as the market reacts to political volatility:
- Total Liquidations (24 hours): $964.84 million.
- Long Positions Liquidated: $877.17 million.
- Bitcoin Liquidations: $243.29 million.
- Ethereum Liquidations: $206.96 million.
- Traders Affected: Over 225,000.
The surge in liquidations underscores growing unease among market participants, influenced by macroeconomic risks and the unexpected impact of U.S. domestic politics on digital assets.
Trump-Musk Feud: A Source of Volatility
The Bitcoin price decline aligns with a public feud between Elon Musk and President Trump. The tension intensified after Musk criticized Trump’s $1.6 trillion “One Big Stunning Bill Act.”
Musk argued that the bill would swell the national deficit and negatively impact Tesla by cutting electric vehicle subsidies directly affect Tesla.
Trump responded by threatening to terminate federal contracts with Musk’s companies, including Tesla, SpaceX, and Starlink, leading to a 15% drop in Tesla’s stock price.
Musk retaliated by calling for Trump’s impeachment and alluding to Trump’s alleged connection to unreleased Epstein files.
White House aides convened an emergency meeting to assess potential economic repercussions.
breaking: President Trump’s former White House Chief Strategist Steve Bannon calls for Elon Musk to be deported, per NY Times.https://t.co/Q82Pbhzppt
– The Kobeissi Letter (@KobeissiLetter) June 5, 2025
This conflict is viewed as a potential destabilizer for technology equities and digital assets, prompting crypto traders to reduce their exposure.
While broader risks exist due to anticipated interest rate adjustments in late 2025 and increased institutional involvement in crypto,this political drama has further clouded market sentiment.
Will Bitcoin Hold Above $100,000?
Bitcoin is currently hovering just above the key psychological support level of $100,000.
A break below this level could trigger algorithmic selling and further liquidations, especially given the prevalence of heavily leveraged long positions.
continued long position liquidations could push Bitcoin to test the $95,000 – $98,000 range before finding significant support.
The Musk-trump feud highlights the increasing integration of the crypto market with global politics and customary finance.
Traders are realizing that bitcoin volatility is influenced not only by on-chain metrics and macroeconomic indicators but also by billionaire clashes and legislative threats.
Until tensions ease or a new market catalyst emerges, Bitcoin’s short-term outlook remains uncertain.
FAQ: Bitcoin’s Recent Volatility
- why did Bitcoin’s price drop?
- Due to liquidations and political tensions between Elon Musk and President trump.
- How much was liquidated in crypto positions?
- Nearly $1 billion.
- What is the key support level for bitcoin?
- $100,000.
- What could happen if Bitcoin falls below $100,000?
- It could trigger more liquidations and algorithmic selling, potentially testing the $95,000 – $98,000 range.
