Bitcoin Falls Below $103K Amid Trump-Musk Feud and Macro Turmoil
Bitcoin’s price dipped nearly 3% in the past 24 hours, triggering massive long liquidations as the market reacted to mounting macroeconomic pressure and escalating political drama. The cryptocurrency dropped from a 24-hour high of $105,915 to $100,500, before recovering slightly to $102,180, according to CoinMarketCap.
Key Stats:
$308 million in Bitcoin long positions liquidated in 24 hours (CoinGlass).
Total crypto market liquidations reached $982.55 million, with longs accounting for $891.63 million.
Trump vs. Musk: A Political Showdown With Economic Fallout
Tensions between former U.S. President Donald Trump and Tesla/SpaceX CEO Elon Musk intensified on June 5, injecting fresh uncertainty into global markets.
Key Developments:
Trump vowed to terminate Musk’s government subsidies, claiming it would save “billions.”
Musk retaliated, saying SpaceX would begin decommissioning its Dragon spacecraft — the only U.S.-made option to send astronauts to space — before walking back the statement hours later.
Musk also warned on X that Trump’s sweeping global tariff plans would likely trigger a recession in the second half of 2025.
This feud adds to investor anxiety already heightened by Trump's unpredictable trade policies, stoking fears of economic slowdown and delayed monetary easing by the Federal Reserve.
Analysts Warn of Continued Profit-Taking and Weak Momentum
Onchain data from Glassnode confirms that long-term Bitcoin holders, especially those holding BTC for over 155 days, have resumed profit-taking after Bitcoin’s May 22 all-time high of $111,970.
“Sell pressure from long-term holders is gradually increasing, and without a strong bullish catalyst, a short-term correction is becoming more likely,” said Glassnode in a June 5 report.
Broader Market Sees Heavy Losses
Bitcoin wasn’t alone in the downturn. Most major altcoins followed suit:
Asset | 24h Change | Current Price |
|---|---|---|
Ether (ETH) | -7.25% | $2,458 |
XRP | -4.35% | $2.13 |
Solana (SOL) | -5.20% | $147.68 |
Market Outlook: What's Next?
Support Zone: $100,000 psychological support remains critical.
Resistance to Watch: $111,800 is the key level to reclaim bullish momentum.
Macro Risk: Delays in Fed rate cuts, rising political friction, and ongoing profit-taking are likely to keep volatility elevated.
Analysts at Swyftx earlier noted that prolonged tariff “ultimatums” without clarity could trap Bitcoin in a sideways trend and even push the price below $100K if sentiment worsens.
With long liquidations piling up and macro fears dominating headlines, crypto markets remain on shaky ground. As the Trump-Musk spat unfolds and long-term holders lock in profits, Bitcoin’s next major move will likely hinge on macroeconomic clarity and regulatory tone in the coming weeks.
