The cryptocurrency market experienced considerable volatility yesterday due to a public conflict between Elon Musk and U.S. President Donald Trump, which had a significant impact on both stock and digital asset markets.
The war of words between Musk and Trump began when the Tesla CEO criticized Trump's policies, leading to a heated exchange on social media.
Investors reacted swiftly:
1- Tesla's stock experienced a significant decline of approximately 17%, exerting downward pressure on equities and crypto .
2- BTC dropped from ~$105K to $101K, while ETH fell below $2,400 amid broader market uncertainty.
Whale Deposits Fuel Market Sell-Off and Derivatives Pressure
* More than 2,500 BTC were deposited into Binance’s spot exchange, shortly followed by a massive 80,000 ETH inflow to derivatives platforms, according to real-time blockchain trackers.
* This massive inflow, captured in the provided chart, suggests that whales was preparing to sell, adding downward pressure on BTC’s price. The immediate consequence was an increase in market supply and the setup of short trades via derivatives.
* This aligns with the broader market downturn, where heightened volatility has already triggered $150M+ in long liquidations on Binance for both BTC and ETH.
Whale Activity:
According to Whale Screener data, significant holders (whales) have actively moved approximately $600 million into centralized exchanges (CEX),before price droped.
Conclusion:
The recent clash between Elon Musk and Donald Trump serves as a stark reminder of how political instability can send shockwaves through both traditional and digital asset markets. The sharp decline in Tesla’s stock and the ensuing cryptocurrency liquidations illustrate the increasing interdependence between equities and cryptocurrencies, where sentiment in one market can provoke cascading sell-offs in another.
Written by Amr Taha
