Bitcoin teeters near the critical $100,000 mark as traders brace for key economic data, escalating political tensions, and mounting liquidation pressure.
Key Takeaways:
Bitcoin faces mounting downside pressure with traders eyeing targets between $87K and $95K.
The feud between Donald Trump and Elon Musk has triggered a sharp downturn in crypto markets.
Over $980 million in crypto liquidations have shaken investor confidence.
U.S. CPI and PPI reports this week could fuel further volatility ahead of the June FOMC meeting.
Bitcoin Eyes Breakdown as $100K Support Wobbles
Bitcoin (BTC) price action is flashing warning signals as bulls attempt to defend the psychologically critical $100,000 level. After falling as low as $100,400 on June 6, BTC recovered modestly to trade around $103,676, but analysts remain wary of further downside.
Crypto traders are now targeting lower support zones, with popular price targets between $87,000 and $95,000. Technical indicators like the Relative Strength Index (RSI) continue trending downward, increasing the risk of a broader market correction.
“The $BTC breakdown has begun,” trader Roman said on X. “Eyeing 95K and possibly lower.”
$980M in Liquidations Intensify Selling Pressure
The crypto market experienced its largest liquidation day since February, with $979.9 million wiped out in the past 24 hours, including $874 million in long positions. Bitcoin alone saw $342.9 million in liquidations, while Ether (ETH), Solana (SOL), and Dogecoin (DOGE) also recorded heavy losses.
Memecoins and altcoins were hit particularly hard, with SOL and SUI down over 7%, and DOGE shedding 9%. Meanwhile, crypto stocks such as Coinbase (COIN) and MicroStrategy (MSTR) fell 4.6% and 2.4%, respectively.
Trump-Musk Clash Fuels Risk-Off Sentiment
A high-profile spat between former U.S. President Donald Trump and Tesla CEO Elon Musk has rattled investor sentiment. Musk criticized Trump’s fiscal policies, calling for impeachment, while Trump threatened to cancel government contracts with Musk-led firms.
The escalating feud has raised concerns about crypto-friendly regulatory momentum, especially as both figures were seen as influential voices in favor of digital assets.
“This public fallout has generated polarizing reactions, with some fearing long-term bearish implications,” on-chain data provider Santiment noted.
Circle IPO Euphoria Adds to Crypto Volatility
Adding to the volatility was the debut of Circle (CRCL), the issuer of USDC, on the New York Stock Exchange. CRCL surged 167% on its first day, opening at $31 and closing at $83. Some market watchers fear a repeat of Coinbase’s 2021 IPO, which preceded a major market correction.
Traders Focus on $100K and $106.2K Key Levels
CryptoQuant highlighted $106,200 as a short-term resistance level tied to the cost basis of recent short-term holders (STHs), while $97,500 is a key support level for mid-term holders. Any breakdown below $100K could trigger rapid downside acceleration.
“Sell the rumor, buy the news? Spikes in crypto-related discussions often mark market turning points,” Santiment added.
Upcoming CPI, PPI Data May Trigger Fresh Volatility
The next catalysts lie in U.S. inflation data. The Consumer Price Index (CPI) and Producer Price Index (PPI) for May will be released on June 11 and 12, just ahead of the Federal Reserve’s June FOMC meeting.
Traders are watching closely for signs of easing inflation that could prompt the Fed to consider interest rate cuts later this year. Currently, markets have priced in a potential 0.25% rate cut in September.
“If inflation rebounds due to trade tariffs, the Fed may remain hawkish longer than expected,” Mosaic Asset warned.
$100K Is the Bull/Bear Battleground
For now, Bitcoin’s $100,000 level remains the key battleground. A breakdown could open the door to $95,000 or even $87,000. But a successful reclaim of $106,000–$107,800 resistance may set the stage for a retest of all-time highs around $112,000—and potentially beyond to $120K.
