Trump-Musk сlash sparks crypto crash; liquidations top $1 billion
Bitcoin's price dropped to approximately $100,500
The cryptocurrency market experienced a significant downturn, with over $1 billion in liquidations, as a public dispute between Elon Musk and President Donald Trump unsettled investors.
Bitcoin's price fell below $100,000, marking a notable decline, while Ethereum and other major altcoins also suffered substantial losses, CoinGape reported.
Key takeaways
- Bitcoin's price dropped to approximately $100,500, leading to widespread liquidations.
- Ethereum saw over $260 million in long position liquidations, reflecting heightened volatility.
- The feud between Musk and Trump, centered around a controversial spending bill, has introduced additional uncertainty into the market.
- The timing of this market instability coincides with an impending options expiry, exacerbating investor concerns.
Feud between Musk and Trump sparks market anxiety
The public disagreement between Tesla CEO Elon Musk and President Donald Trump has added a layer of complexity to an already volatile market. Musk's criticism of a proposed congressional spending bill, which includes reductions in green energy subsidies, drew a sharp response from Trump, who threatened to cut federal contracts with Musk's companies. The conflict then turned to personal insults and threats.
This exchange has raised concerns about potential regulatory repercussions for Musk's ventures and has contributed to investor unease.wired.com
Market impact and investor sentiment
The immediate effect of the Musk-Trump feud on the cryptocurrency market has been pronounced. Bitcoin's price decline led to significant liquidations, with over $1 billion in positions closed. Ethereum experienced a notable drop, with long positions worth over $260 million liquidated. Other cryptocurrencies, including Solana, XRP, and Binance Coin, also faced losses ranging from 4% to 8%. The timing of these events, just before a major options expiry, has further amplified market volatility.
Crypto liquidations. Source: Сoinglass
As the situation between Musk and Trump continues to evolve, market participants remain cautious. The potential for further regulatory actions or policy changes adds to the uncertainty. Investors are advised to monitor developments closely, as the interplay between political dynamics and market performance becomes increasingly evident.
We also wrote earlier that TRUMP token drops 11% amid clash with Elon Musk.
