The price of Bitcoin (BTC) experienced sharp turbulence over the last 24 hours, falling nearly 3% to $100,500 before slightly rebounding to $102,180, according to CoinMarketCap. This volatility was amplified by two major forces: growing macroeconomic unease and the public clash between U.S. President Donald Trump and Tesla/SpaceX CEO Elon Musk.
$308 Million in BTC Longs Liquidated
Traders who went long on Bitcoin were caught off guard by the drop, resulting in approximately $308 million in long position liquidations, data from CoinGlass shows. The cryptocurrency fell from an intraday high of $105,915 to $100,500, setting off a wave of stop-loss triggers and forced liquidations across major exchanges.
The situation mirrored a broader crypto market sell-off, with total liquidations exceeding $982 million, of which over $891 million came from long positions.
Trump-Musk Clash Fuels Market Anxiety
The market disruption coincides with an intensifying feud between Trump and Musk. On June 5, Musk criticized Trump’s proposed global tariffs, claiming they could “cause a recession in the second half of this year.” Trump retaliated on his Truth Social platform, suggesting the cancellation of Musk’s government contracts would save the U.S. “billions and billions.”
Musk escalated the situation by announcing SpaceX would begin decommissioning its Dragon spacecraft, the only current U.S.-built vehicle for sending astronauts to space, though he later walked back the statement.
This high-profile clash has injected uncertainty into investor sentiment, particularly around federal policy direction and tech-sector stability, two areas tightly intertwined with crypto market confidence.
Long-Term Bitcoin Holders Join the Sell-Off
Adding to the selling pressure, analytics platform Glassnode reported that long-term Bitcoin holders—those holding BTC for more than 155 days—have been gradually offloading their holdings since Bitcoin’s all-time high of $111,970 on May 22.
Glassnode warned in a June 5 market update:
“With long-term holders gradually applying sell pressure, the probability of a short-term correction continues to build, particularly in the absence of a strong upside catalyst.”
These strategic exits from seasoned holders are compounding downside momentum, especially as new bullish catalysts remain elusive.
Altcoins Join in the Downturn
The sell-off wasn’t limited to Bitcoin. Major altcoins also suffered:
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Ethereum (ETH) fell 7.25%
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XRP dropped 4.35%
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Solana (SOL) slid 5.20%
This widespread correction suggests a broad market sentiment shift, likely influenced by macro-level fears and trader repositioning ahead of anticipated volatility.
What’s Next for Bitcoin?
Despite the short-term weakness, Bitcoin is still trading above a key psychological level of $100K, which some analysts see as a potential support zone. However, the combination of political drama, institutional uncertainty, and long-term holder exits could keep prices under pressure unless a new catalyst emerges.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always conduct your research before making any investment decisions.
