Bitcoin ($BTC ) tumbled nearly 3% in the last 24 hours, triggering over $308 million in long position liquidations as macro tensions and high-level political drama roiled investor sentiment.


The world’s largest cryptocurrency briefly dipped to $100,500 before recovering slightly to $102,180, according to CoinMarketCap data. The decline follows an escalating public feud between U.S. President Donald Trump and Tesla CEO Elon Musk, alongside ongoing sell pressure from long-term Bitcoin holders.

Political Spat Rattles Markets

On June 5, Musk warned on X (formerly Twitter) that Trump’s proposed global tariff plans could “cause a recession in the second half of this year.” Trump quickly fired back via Truth Social, claiming that cutting off Musk’s government contracts could save “billions of dollars.”

In a brief but dramatic counter, Musk said SpaceX would begin decommissioning its Dragon spacecraft—NASA’s only current U.S.-made human transport system—only to walk back the statement hours later.

Liquidations Mount as Bulls Get Burned

The abrupt price drop caught long traders by surprise. According to CoinGlass, long liquidations totaled $308 million, part of nearly $983 million in total crypto market liquidations, with $ETH , $XRP , and SOL also posting notable declines.

Meanwhile, Glassnode reported that long-term holders—wallets holding BTC for 155+ days—have increasingly been offloading holdings after BTC hit an all-time high of $111,970 in late May.

“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,” Glassnode stated in its June 5 market note.

Market Outlook

Despite the correction, BTC continues to trade above the psychological $100,000 mark. However, without new bullish catalysts and amid rising macro uncertainty, analysts warn that further volatility could follow.

Other major tokens also declined: ETH fell 7.25%, XRP dropped 4.35%, and Solana slipped 5.2%, reflecting broader market unease.

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