Bitcoin (BTC) slumped to a low of $100,516 early during today’s session as bears took control of the price action. The flagship cryptocurrency dipped over 3% before recovering and moving to its current level. Despite the recovery, BTC is down nearly 2% over the past 24 hours, trading around $103,000.
The price decline led to almost $1 billion in liquidations across the crypto futures market, dragging the prices of other tokens, including Ethereum (ETH), Solana (SOL), and Ripple (XRP) lower.
Donald Trump and Elon Musk Clash Over Government Spending
The crypto market plunged nearly 5% in the past 24 hours, wiping out over $70 billion from its market capitalization as Bitcoin led the decline, followed by Ethereum (ETH), Ripple (XRP), and Solana (SOL). The flagship cryptocurrency plunged to a low of $100,421 late on Thursday, sparking liquidations with almost $970 million, according to data from Coinglass. Long liquidations accounted for 90% of total liquidations, while shorts accounted for the remaining 10%. Analysts have pointed out that liquidation figures could be significantly higher, considering APIs face delays in reporting liquidations to third-party platforms.
The decline comes amid a spiraling clash between President Donald Trump and SpaceX CEO Elon Musk over the One Big Beautiful Bill Act (OBBBA). The bill narrowly passed the house by a vote of 215-214, aiming to make permanent tax cuts from the 2017 Tax Cuts and Jobs Act (TCJA), which Trump signed into law. The bill also includes a $4 trillion increase in the US debt ceiling, among several other issues.
Musk had condemned the bill in a series of social media posts, calling it the “Big Ugly Spending Bill,” adding it would increase the government deficit by $2.5 trillion and that Trump’s tariffs would likely spark a recession in the second half of 2025. Trump dismissed Musk’s criticisms and alleged it was motivated by the bill eliminating electric vehicles (EV) tax credits. Trump stated,
“The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon's governmental subsidies and contracts.”
Bitcoin (BTC) Facing Immediate Crash Risk
Bitcoin (BTC) has entered a cooling phase after a significant rally that saw the price surge to a new all-time high of $111,970. Analysts believe that BTC’s post-rally decline could cause its price to crash to $100,000 or lower. The flagship cryptocurrency fell to $100,000 on Thursday before recovering and moving to current levels. BTC’s pullback is consistent with the market’s behavior after an extended bullish phase. A dip below $100,000 could give traders a fresh opportunity to buy BTC at a discount. Analysts remain optimistic about BTC’s recovery, stating that a correction below $100,000 is crucial in determining the prospect of another rally. If buyers step in to support the price at crucial support levels, BTC could recover and continue its bullish trajectory, potentially rising beyond $115,000.
Bitcoin (BTC) Price Analysis
Investors who bet on Bitcoin took a significant hit over the past 24 hours as the flagship cryptocurrency plunged over 3%, falling to a low of $100,500 before recovering and moving to current levels. The decline comes amid an escalating feud between President Donald Trump and SpaceX CEO Elon Musk. BTC’s sudden decline caught traders off guard as their positions were liquidated. Musk escalated his ongoing feud with President Trump, taking to X to state that Trump’s tariff plans will create a recession in the second half of the year. Several analysts share the opinion, with Pav Hundal, lead analyst at Swyftx, stating that policymakers may delay monetary easing until they get hard data on the impact of Trump’s tariffs.
President Trump, taking aim at Musk, posted on Truth Social that terminating Musk’s government subsidies and contracts would save “billions and billions for the US government.” Musk responded by stating that SpaceX would begin decommissioning its Dragon spacecraft immediately, a statement that he rescinded later.
“In light of the President’s statement about cancellation of my government contracts, @SpaceX will begin decommissioning its Dragon spacecraft immediately.”
Another factor weighing down on BTC is an increasing number of long-term holders locking profits and selling off their holdings. Glassnode stated in a market note,
“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 to push Bitcoin decisively above [$111,800].”
BTC started the previous week in positive territory after posting an increase of 1.16% on Sunday. The price continued to push higher on Monday, rising 0.32%, but was back in the red on Tuesday, falling 0.46% to slip below $109,000 and settling at $108,954. The price declined on Wednesday, falling 1.03% to $107,834. Bearish sentiment intensified on Thursday as BTC fell over 2%, slipping below the 20-day SMA and settling at $105,662. Sellers retained control on Friday as the price fell 1.51%, dropping below $105,000 and settling at $104,067.
Source: TradingView
Despite the overwhelming selling pressure, BTC recovered over the weekend, rising 0.69% on Saturday and almost 1% on Sunday to settle at $105,775. The price plunged to an intraday low of $103,734 on Monday as selling pressure intensified. However, it recovered from this level to register a marginal increase and move to 105,903. BTC lost momentum on Tuesday and fell 0.44% to $105,435. Price action remained bearish on Wednesday as BTC fell nearly 1% to go below $105,000 and settle at $104,755. Bearish sentiment intensified on Thursday as BTC fell over 3%, plunging to a low of $100,421 before settling at $101,615. The current session sees the price up nearly 2% as buyers look to push it back above $105,000. If sellers regain control, BTC could drop to $100,000 or lower.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
