Bloodbath! A single day evaporates tens of billions, Musk and Trump’s mutual tearing ignites a massacre in the crypto world
The Twitter spat between the two billionaires has turned the cryptocurrency market into a sacrifice for power games, with leveraged players losing everything in a river of blood overnight.
Last night, the crypto world faced a bloody massacre amid the mutual tearing of Musk and Trump. Bitcoin plummeted over 1%, with prices piercing key support at $106,000; Ethereum fared worse, with a nearly 3% drop causing prices to crash through the $2400 defense line.
This farce, which began with political games, quickly evolved into a market disaster: the total market value of the crypto market evaporated by 3.1% within 24 hours, with Dogecoin leading the decline due to Trump's 'censorship' threat, and long positions being liquidated en masse.
Power Games: Musk and Trump’s mutual tearing ignites the fuse
The fuse of this massacre points directly to a top-level power struggle. Musk suddenly blasted the 'Big and Beautiful Act' pushed by Trump on platform X, calling it a 'debt slavery machine', and threatened to eliminate legislators who support the act in the primaries.
Trump's counterattack precisely targeted the crypto world's soft underbelly—he not only mocked Musk's companies for relying on government subsidies but also hinted at reviewing Dogecoin. The clash between giants in politics and business instantly ignited market panic, with DOGE plummeting and the crypto market evaporating 3.1% in market value within 24 hours.
This is not just a simple war of words. When Trump pointed his finger at Dogecoin, he was actually warning: any cryptocurrency could become a target for political retaliation. This uncertainty directly triggered institutional sell-offs, and BlackRock's Bitcoin ETF, despite having $72 billion in capital, struggled to withstand panic selling.
The market's sensitivity to policy risks has long been foreshadowed. A similar conflict in June 2025 led to a single-day market crash of 5.1%, with nearly $1 billion in positions vaporized. As history repeats, the sickle remains sharp.
Technical slaughter: Critical support levels were brutally washed away
Market data reveals the technical logic behind this massacre. Bitcoin saw a massive transaction of 14,695 BTC near 107,000, where bulls and bears engaged in a brutal battle. The result was a complete victory for the bears, with prices breaking through the 106,000 daily mid-line support, signaling the collapse of the bull defense line.
More deadly is the fact that Bitcoin's six-day volatility below 3% was utterly shattered. This low-volatility state originally indicated a directional breakout, but no one anticipated that the breakout would be a downward collapse.
The illusion of a 'V-shaped reversal' for Ethereum has become a trap to lure in buyers. After briefly testing the 2438 support, it seemed to rebound, but in fact attracted leveraged bulls, and then the bears struck precisely, turning the 2400 level into scorched earth.
The liquidation engine has begun to roar. After Ethereum plummeted nearly 3%, the mountain of leveraged long positions on DeFi lending platforms was automatically liquidated. Bitget analysts warn: if ETH drops another 20%, it will trigger $336 million in liquidations, leading to a death spiral.
Ethereum: The brutal truth of the coming winter
While Bitcoin struggles in the storm of policies, Ethereum faces structural collapse. The ETH/BTC exchange rate has dropped to a five-year low, with technical indicators showing a 'knife-like' plunge—those who catch the knife will lose limbs.
The collapse of fundamentals is even more suffocating: Solana crushes Ethereum in DEX trading volume, with former leader being humiliated in turn by Tron and SOL on on-chain revenue rankings. Token Terminal data shows that Ethereum's fee income ranks only seventh this year, even being overshadowed by new players like Jito.
Institutions are voting with real money: Bitcoin ETFs continue to attract funds, while Ethereum ETFs are seeing continuous outflows. When the SEC's stance on ETH staking ETFs is ambiguous, the market votes with its feet—passing it won’t save the downward trend.
The bloodiest prediction comes from analyst Alessandro Ottaviani: ETH/BTC may drop another 30% to the 0.016 range. When RSI falls to a historic low of 23.32 without any rebound, it means the technical aspect has completely collapsed.
When giants tear each other apart, what are you doing? Last night, our community laid out plans in advance, second time hitting the void, strong on the technical front, and favorable news, we took a big bite, while the giants were fighting, we fished in troubled waters, what a joy! Follow Shen Ce, let’s drink and feast together!
Personal Opinion from Shen Ce: Don't catch flying knives, wait for the autopsy report
The policy black swan is far from over: Trump's tariff policy has already pushed up June import prices, reviving the ghost of inflation. If the Federal Reserve turns hawkish, risk assets may face another round of slaughter.
The ETH death spiral has just begun: breaking the $2400 level is just an appetizer, $2200 is a paper-thin support, the real liquidation graveyard lies between $1600 and $1800—where tens of billions of leveraged corpses are buried.
The only glimmer of hope: historical data shows an average return of 7.56% in July. If the Nasdaq hits a new high, boosting risk appetite, combined with BTC ETF capital inflows, it may trigger a violent rebound. But remember: a rebound is an opportunity to escape, not a signal to buy the dip.
Ultimate Warning
"When two old white men can cause a collapse in decentralized finance with a Twitter spat, the veil of the blockchain revolution has been torn apart."
"Before the SEC's Ripple hearing gunfire on July 3, clear out leverage, prepare ammunition—on the altar of power games, retail investors are only fit to be firewood."
Now, watch the BTC 105,000 defense line—that is the last bolt of the gate to hell. Follow Shen Ce to break through the gate of hell, reshape the world pattern, and reach the peak of glory!#大而美法案 #特朗普马斯克分歧 $ETH