Political Heat Sparks Bitcoin Sell-Off — Traders Flip Bearish Fast
Bitcoin (BTC) saw a sharp decline in the last 24 hours, dipping to an intraday low of $100,984, as heightened political tension between Donald Trump and Elon Musk triggered risk-off sentiment across the crypto market. The global market cap slid 4% to $3.33 trillion, highlighting increased volatility. Data from CryptoQuant analyst Darkfost revealed that Binance’s net taker volume—a metric tracking aggressive long and short positions—plummeted from $20 million to -$135 million within eight hours, marking the largest intraday reversal in 2025. The sharp drop signals a sudden shift in trader sentiment as macro events and influential figures dominated the narrative.
Market participants quickly shifted to short positions, increasing downward pressure. Funding rates on BTC perpetual futures also swung from +0.003 to -0.004, reflecting the bearish tilt. Historically, extreme negative funding rates have often preceded strong recoveries. Notable examples include BTC's surges in October 2023, September 2024, and May 2025. However, the market doesn’t always bounce—March 2025’s trade tariff news, for instance, triggered a deeper correction. While traders now brace for further turbulence, some see the current dip as a setup for another rebound if bearish sentiment overshoots.
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