Last night, U.S. stocks and the cryptocurrency market also experienced significant volatility. Initially, it was due to Trump's discussions on trade issues, which slightly warmed the market. However, Trump and Musk fell out over the (Big and Beautiful Act) and exchanged insults on their respective social platforms. When titans clash, the little guys suffer, and both U.S. stocks and the cryptocurrency market saw substantial declines, with Bitcoin nearly dropping below $100,000. The market seems to consider the fallout between these two prominent figures in the U.S. as a dangerous signal, and the subsequent developments are worth monitoring.

Another piece of good news is that Circle officially listed on the New York Stock Exchange via IPO on June 5, with the stock code 'CRCL', an issuance price of $31 per share, and it directly surged past $75 at the market opening. The stock performance exceeded expectations, and the traditional market is optimistic about more companies focused on cryptocurrency and blockchain going public, considering it an important indicator of the recent trend in the U.S. cryptocurrency market.

But there seems to be another interpretation in the cryptocurrency sphere. Looking back to April 14, 2021, Coinbase went public on the Nasdaq through a direct listing, right at the peak of the bull market, with Bitcoin first breaking $62,000 on April 15, 2021. However, shortly after, the entire cryptocurrency market crashed, and Bitcoin fell below $30,000 by the end of July 2021. Whether history will repeat itself is now unknown, but as U.S. economic data worsens, tensions between Trump and Musk rise, and uncertainties such as tariffs still exist, the economic situation in the U.S. might drag down the cryptocurrency market.

Bitcoin fell to $101,579, down 3.5% in the past 24 hours and 4.5% over the past week, with nearly $1 billion being liquidated on major exchanges. This drop coincides with the escalating political conflict between Elon Musk and Donald Trump—an unusual but far-reaching factor that disrupted market order and prompted investors to withdraw funds.

Nearly $1 billion was liquidated

According to liquidation data, a total of $964.84 million in positions were liquidated over the past 24 hours, of which $877.17 million were long positions. The total liquidation amount for Bitcoin was $243.29 million, followed by Ethereum at $206.96 million. During this period, over 225,000 traders were liquidated.

The sudden liquidation of leveraged positions reflects the growing concerns among market participants—many of whom are reacting to broader macro risks and the unpredictable impact of U.S. domestic politics on the digital asset market.

Can Bitcoin hold above $100,000?

From a technical perspective, Bitcoin is currently above the important psychological support level of $100,000. If it decisively breaks below this level, it could trigger a new wave of selling and liquidation, especially given the dominance of leveraged long positions. If long positions continue to be liquidated at this pace, Bitcoin could test the $95,000-$98,000 range before finding significant support.

Before tensions ease or the market finds new catalysts, Bitcoin's short-term outlook remains fragile.

Recently, tokens that could benefit from Circle's listing are worth paying attention to.

ENA: Hot assets under the stablecoin narrative

ONDO: BlackRock announces a 10% subscription for Circle's IPO shares, while the U.S. Treasury token OUSG issued by Ondo is based on BlackRock's BUIDL fund as its core underlying asset.

CRV: Curve is a major venue for trading multiple stablecoins, with USDC being one of the core assets in Curve's liquidity pool.