Why Is the Crypto Market Down Today? Trump-Musk Feud and Heavy Liquidations Trigger Market Drop
The global cryptocurrency market cap slid by 2.30% to $3.21 trillion in the last 24 hours, as a toxic combination of macro-political tension, nearly $1 billion in liquidations, and a deteriorating technical structure weighed heavily on investor sentiment.
Trump vs. Musk Feud Ignites Risk-Off Sentiment
The trigger: an intensifying feud between U.S. President Donald Trump and Tesla CEO Elon Musk, both of whom have previously supported pro-crypto narratives. Their public fallout sent shockwaves through financial markets.
Musk criticized Trump’s spending bill—dubbed the “Big Beautiful Bill”—and supported impeachment calls. In retaliation, Trump vowed to terminate Musk’s government contracts, claiming it would save “billions.” The tit-for-tat rhetoric sparked a broader risk-off mood, unsettling both traditional and crypto investors.
As panic set in, Bitcoin (BTC) fell 5.2% to $100,400 before rebounding to $103,644, while Ether (ETH) dropped to $2,384 before stabilizing around $2,478. Other major tokens also took hits:
Solana (SOL): -5.2% to $148.03
XRP: -4% to $2.14
Dogecoin (DOGE): -9% amid Musk-linked FUD
Over $980M in Liquidations Amplify Market Pain
The Trump-Musk drama coincided with a massive $980 million liquidation event across crypto futures, marking the largest single-day shakeout since February 25. Notably, $874 million in long positions were wiped out, indicating aggressive bullish positioning was caught off guard.
BTC longs liquidated: $342.9M
ETH longs: $285M
SOL: $50.3M
DOGE: $27M
XRP: $23M
This wave of liquidations contributed to a feedback loop of selling pressure and heightened volatility.
Technical Breakdown: Is $2.9 Trillion the Next Stop?
From a charting perspective, the total crypto market cap (TOTAL) broke below a key support at $3.25 trillion and is now testing the $3.12 trillion level—where the 50-day and 200-day SMAs converge.
If this level fails, analysts warn of a potential drop to the 100-day SMA near $2.9 trillion, echoing February’s 26% market-wide correction.
The Relative Strength Index (RSI) also slipped to 45, down from 79 in May, signaling increasing bearish momentum.
BTC Support Lies at $97.5K — Analyst
According to CryptoQuant’s Axel Adler Jr, the next critical support for Bitcoin sits at the Short-Term Holder (STH) Realized Price of $97,500. “If sentiment doesn’t improve and macro tensions continue, that’s where Bitcoin may head next,” Adler warned, according to Cointelegraph.
