#TrumpVsMusk The crypto market is experiencing a bloodbath, with $800 million wiped out due to the Elon Musk vs. Donald Trump feud. Here's what's happening:
*What Just Happened?*
- Trump and Musk got into a Twitter war, with Trump threatening to cancel government contracts with Musk's companies and Musk accusing Trump of being linked to Jeffrey Epstein.
- This led to a panic in the crypto market, with Bitcoin (BTC) dropping 5% and other major cryptos like Ethereum (ETH), Solana (SOL), Dogecoin (DOGE), and XRP crashing 6-10% ¹ ².
*Why Did Crypto Crash?*
- The crash wasn't just about Trump vs. Musk; three hidden factors made it worse:
- *Overheated Leverage*: Many traders were over-leveraged long (10x, 20x, 50x).
- *Whale Manipulation*: Big players triggered stop losses to scoop up cheap coins.
- *Profit-Taking*: BTC had just hit $105K+, and weak hands cashed out fast ³.
*How to Play This Dip Like a Pro*
- *Buy the Fear*: Major crashes can be best long-term entry points.
- *Avoid High Leverage*: Stick to 3x-5x max unless you like getting liquidated.
- *Watch for Reversal Signs*: If BTC holds $100K, a bounce is likely.
*What's Next?*
- *Short-term*: More volatility expected due to the ongoing Trump-Musk feud.
- *Mid-term*: Institutions like BlackRock and Fidelity might buy this dip.
- *Long-term*: BTC halving + ETF inflows could push prices to $150K+ by the end of the year ⁴.
