Why Is the Crypto Market Down Today? Trump-Musk Feud, Liquidations & Weak Technicals Shake Investors

The global cryptocurrency market is facing renewed selling pressure on June 6, driven by a volatile mix of political drama, massive futures liquidations, and a weakening technical setup.

The total crypto market capitalization dropped by 2.3% to $3.21 trillion in the past 24 hours, sparking renewed concerns among traders and investors. Leading digital assets like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) all saw steep losses as market sentiment turned bearish following recent political turmoil and technical breakdowns.

24-hour performance of large-cap cryptocurrencies. Source: Coin360

Let’s break down the key reasons why the crypto market is down today.

1. Trump-Musk Clash Sparks Market Turmoil

One of the biggest catalysts behind the crypto market’s decline was an unexpected public feud between former U.S. President Donald Trump and tech billionaire Elon Musk.

What began as political posturing quickly escalated into a war of words. Musk criticized Trump’s controversial spending bill — sarcastically dubbed the “Big Beautiful Bill” — and even hinted at supporting impeachment efforts. Trump fired back, threatening to eliminate government subsidies and contracts tied to Musk’s companies like SpaceX and Tesla.

Source: Donald Trump

This unexpected political fallout injected fear and uncertainty into risk markets, with crypto being particularly vulnerable. As risk appetite waned, investors rushed to offload digital assets.

• Bitcoin dropped as much as 5.2% to $100,400, before bouncing slightly above $103,000.

• Ethereum fell to $2,384, marking a 4% loss.

• XRP and Solana declined by 4% and 5.2%, respectively.

• Dogecoin (DOGE), which is often influenced by Musk’s public statements, took the biggest hit — plunging over 9% in a single day.

Performance of top cryptocurrencies. Source: CoinMarketCap

2. Massive Crypto Liquidations Fuel Downtrend

Adding to the downside pressure, the crypto derivatives market experienced a massive wave of liquidations totaling nearly $1 billion.

According to market data:

• $979.9 million in crypto futures were liquidated in the last 24 hours.

• Of that, $874 million were long positions — the largest daily long wipeout since February 25.

• Short positions saw much less damage, with just $105 million liquidated.

Leading the pack in liquidations:

• Bitcoin: $342.9 million

• Ethereum: $285 million

• Solana: $50.3 million

• Dogecoin: $27 million

• XRP: $23 million

These cascading liquidations not only deepened the losses but also intensified investor panic, creating a feedback loop of selling pressure across the board.

Crypto market’s liquidation heatmap (24 hours). Source: CoinGlass

Read more blog: Crypto Market Sees $1 Billion in Liquidations as Bitcoin Dips Below $100K

3. Bearish Technicals Signal More Downside

Beyond politics and liquidations, technical indicators are flashing warning signs for further declines.

The Relative Strength Index (RSI) for the total crypto market has dropped to 45, down from overbought territory (79) just a few weeks ago on May 10. This suggests the market is rapidly losing bullish momentum and may continue sliding in the short term.

Technical analysts also note that the total crypto market cap has broken below a descending parallel channel — a bearish sign. If this decline persists and the market cap falls below $3.12 trillion, analysts warn it could head toward the 100-day Simple Moving Average (SMA) near $2.9 trillion.

According to CryptoQuant analyst Axel Adler Jr., Bitcoin's next major support level lies around $97,500, which is the realized price for short-term holders — a historically significant area that could attract dip buyers.

TOTAL crypto market cap daily performance chart. Source: TradingView

Summary: Key Factors Driving the Crypto Market Down

The June 6 downturn in the cryptocurrency market is a result of multiple overlapping catalysts, including:

• A surprise political spat between Trump and Musk, shaking investor confidence.

• Nearly $1 billion in leveraged position liquidations, intensifying the sell-off.

• Technical weakness, as RSI and support levels suggest more downside potential.

• A potential test of $2.9 trillion total market cap, which could trigger additional volatility.

With macroeconomic uncertainty and investor sentiment on edge, traders are advised to watch key support zones and upcoming news events closely.

Quick Recap:

• Market Cap Today: $3.21 trillion (↓2.3%)

• Biggest Liquidations: BTC ($342.9M), ETH ($285M)

• RSI Drops to 45, signaling weakening momentum

• Key Support: Bitcoin at $97,500; Total Market Cap at $2.9 trillion

• Watch List: Trump–Musk news, futures data, technical levels