Trump-Musk Feud Sparks Bitcoin Dip, $308M in Long Positions Liquidated

June 6, 2025 — Tensions between former U.S. President Donald Trump and tech mogul Elon Musk are sending ripples through the cryptocurrency market, contributing to a sharp drop in Bitcoin (BTC) and massive trader liquidations.

Over the last 24 hours, Bitcoin shed nearly 3%, triggering a wave of long position liquidations totaling over $308 million, as per data from CoinGlass. The decline comes amid mounting macroeconomic uncertainty, Musk’s stark warnings about recession risks, and continued profit-taking by long-term Bitcoin holders.

Bitcoin Slides From $105K High to Hover Just Above $102K

Bitcoin experienced significant intraday volatility, climbing as high as $105,915 before plummeting to around $100,500. At the time of writing, BTC is trading at $102,180, holding just above a critical support level.

The price drop has not only shaken short-term investor sentiment but also triggered a major wave of crypto liquidations, as bullish traders betting on further upside were caught off-guard.

Trump vs. Musk: Political Drama Meets Market Jitters

Fueling the market turbulence is the escalating war of words between Trump and Musk, which spilled over into economic policy and government contracts.

On June 5, Musk criticized Trump’s proposed global tariffs, warning that they could trigger a recession in the second half of 2025. Posting on his social media platform X, Musk claimed such trade policies would severely hamper global economic stability.

Trump fired back via Truth Social, declaring that terminating federal subsidies and contracts with Musk’s companies would save the U.S. “billions of dollars.” Musk initially threatened to begin shutting down SpaceX’s Dragon spacecraft program in response but later retracted the statement.

Dragon remains the only U.S.-built spacecraft currently capable of ferrying astronauts into space, highlighting the potential national implications of this high-profile spat.

Bitcoin is down 3.61% over the past seven days. Source: CoinMarketCap

Long-Term Bitcoin Holders Lock In Profits

Adding to the downward pressure, many long-term Bitcoin holders—defined as those holding BTC for more than 155 days—have begun offloading their assets to secure profits after May’s all-time high of $111,970, according to Glassnode.

In a market update released on June 5, Glassnode noted, “As long-term holders continue to sell into strength, the chances of a short-term correction increase—particularly with no new bullish catalyst in sight.”

Altcoins Follow Bitcoin’s Lead in Market Rout

The Bitcoin sell-off wasn’t an isolated event. Other major altcoins also recorded steep declines over the same period:

• Ethereum (ETH) dropped 7.25%

• XRP fell 4.35%

• Solana (SOL) slid 5.20%

The broader cryptocurrency market saw total liquidations hit $982.55 million, with long positions accounting for a staggering $891.63 million.

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

Key Takeaways: What Traders Should Watch Next

• Bitcoin’s price volatility is being fueled by both political tensions and long-term holder sell-offs.

• The Trump-Musk clash is adding fresh uncertainty to financial markets, potentially influencing investor risk appetite.

• Massive liquidations in long positions could open the door to further downside if no bullish momentum returns.

• Watch for key support levels around $100,000, and monitor macroeconomic updates related to U.S. trade policy and rate decisions.

Conclusion

As politics and markets continue to collide, Bitcoin and the broader crypto sector remain highly sensitive to both macroeconomic signals and unexpected headlines. Traders and investors are advised to proceed with caution, keeping a close eye on both technical indicators and geopolitical developments.