The public rupture between U.S. President Trump and billionaire Elon Musk has sparked a media storm and directly impacted the fragile cryptocurrency market. Just as the two clashed, XRP (Ripple) plummeted 7% in a single day, and Bitcoin and Ethereum also could not escape downward pressure. The market's massive fluctuations are not just simple political disagreements; the sensitive nerves of the crypto industry have been severely provoked.
Conflict escalates: Musk opposes Trump's tax reform, angrily calls for impeachment
The dispute originated from the (Beautiful Great Act) proposed by Trump, a massive tax reduction plan that was originally an economic pillar of Trump's campaign. However, Musk clearly opposed it, calling for Congress to veto the bill, claiming it would drag the U.S. into the abyss of 'debt slavery.'
More intensely, Musk publicly accused Trump of not disclosing documents related to the notorious Epstein, suggesting that there are hidden secrets within. This statement directly ignited public opinion and completely tore apart the facade between the two.
Trump is not to be outdone, threatening to cancel federal subsidy contracts for Tesla and SpaceX, attempting to strike at Musk's corporate empire from the source.
Why is the crypto market 'collateral damage'?
Don't think this is merely a political drama. In fact, the influence of Musk and Trump in the cryptocurrency realm should not be underestimated.
Musk has always been a traffic magnet in the crypto circle, especially as the number one 'influencer' for Dogecoin (DOGE), while Tesla holds a large amount of Bitcoin. Trump is seen as one of the few crypto-friendly presidential candidates in recent years, having clearly supported the establishment of a cryptocurrency reserve system.
The rift between these two heavyweight figures not only shook investor sentiment but also triggered a chain reaction in the cryptocurrency market. Mlion.ai's on-chain sentiment radar data shows that on the day of the incident, market FUD (fear, uncertainty, doubt) sentiment surged, and high-frequency trading signals experienced significant fluctuations.
XRP fell first, with limited rebound strength
In the turmoil, XRP became the leading loser. From a previous day's high of $2.23, it plummeted to $2.06, with a maximum daily drop of 7.62%. Although there was a brief rebound during the day, with the price rising to $2.14, it still accumulated a drop of 3.24% in the past 24 hours, a weekly drop of 3.84%, and a monthly drop of 0.37%.
Mlion.ai's on-chain data analysis further indicates that alongside the price drop, XRP's trading activity and address count have declined simultaneously, with a strong wait-and-see sentiment in the market.
Bitcoin and Ethereum also suffered
Not just XRP, Bitcoin and Ethereum are also hard to escape. Bitcoin fell from $105,900 to $100,000, a drop of 5.57%; Ethereum plummeted from $2,640 to $2,387, a drop of as much as 9.58%.
However, after the market turmoil, mainstream assets began to rally technically: Bitcoin rose to $102,885, while Ethereum climbed to $2,452. Overall, however, the bulls remain weak and have not completely escaped the risk zone.
Massive liquidation wave, market panic intensifies
According to Mlion.ai data, in the past 24 hours, the total liquidation scale of the crypto market reached $982 million. Among them, the long positions faced liquidation amounting to $881 million, while short positions also saw $101 million in liquidations, highlighting the drastic reversal of market sentiment.
By cryptocurrency, the liquidation amount related to XRP reached $23.4 million, Bitcoin was $342 million, and Ethereum had $286 million, with liquidation data visually reflecting the intense capital competition and market turmoil.
Summary: Political disputes ignite fragile emotions in the crypto market
This confrontation triggered by Musk and Trump goes far beyond personal grievances and has a substantial impact on the entire financial market, especially high-volatility crypto assets. In the short term, market sentiment may still linger in fluctuations.
Want to grasp the anomalies in the crypto market in real-time during turbulent conditions? Utilizing Mlion.ai's on-chain sentiment monitoring, liquidation tracking, and fund flow analysis modules may help you gain insights into risks and seize opportunities, allowing you to navigate the storm successfully.
Disclaimer: The above content is for informational sharing only and does not constitute any investment advice!