#Bitcoin drops below $100,000 amidst profit-taking and the conflict between Trump vs Musk#
Bitcoin (BTC) fell 3% on Thursday, wiping out over $84 billion from its market capitalization as strong profit-taking from long-term holders (LTH) and macroeconomic instability impacted its price. Notably, the clash between President Donald Trump and Tesla CEO Elon Musk over the "One Big Beautiful Bill" has pushed this leading cryptocurrency into a short-term bearish outlook.
Bitcoin plummets as macroeconomic conditions and prolonged LTH profit-taking hinder growth momentum.
Bitcoin fell below $101,000 on Thursday, extending weekly losses to over 4%. This decline marks the continuation of a trend that began last week, as LTH continued to exert significant selling pressure on the leading cryptocurrency.
The actual profit of BTC peaked at $1.47 billion per day last week, primarily driven by LTH spending, according to Glassnode's weekly report. The 30-day moving average of actual LTH profits rose to $1 billion per day after Bitcoin fell below $111,000, far exceeding the daily actual profit of $320 million for short-term holders (STH). The increase in actual profits marks the fifth time in this cycle that this metric has risen above $1 billion.
Glassnode stated in the report: "This group, often associated with confident investors, is now taking profits on a large scale, a behavior that often signals maturity or exhaustion in the bullish trend."
Actual profits of BTC according to LTH/STH. Source: Glassnode
Selling pressure from LTH, accompanied by increasing uncertainty in macroeconomic factors, has also contributed to Bitcoin's decline. The combination of weak employment data, recessionary stress, and Elon Musk's criticism of government spending over the past week has pushed Bitcoin lower.
Musk once again condemned President Trump's "One Big Beautiful Bill" on Thursday, expressing concern that it could bankrupt the U.S. economy and increase the government's deficit. According to the Congressional Budget Office, this bill is expected to increase the deficit by about $2.4 trillion over the next 10 years.
Musk also added that "Trump's tariffs will cause a recession in the second half of this year."
President Trump responded that Musk is angry because the bill includes cuts to tax credits for electric vehicles.
"Elon is 'exhausted', I asked him to leave, I rescinded his electric vehicle ban, which forced people to buy electric vehicles that no one else wanted to buy (which he has known for months I would do!), and he went CRAZY," Trump wrote on the Truth Social platform on Thursday.
Bitcoin is at risk of dropping to $92,500 if it fails to recover the support level of $103,000.
The words between Trump and Musk have amplified the pessimistic sentiment in the market, causing Bitcoin to drop below the support level of $103,000 on Thursday. The leading cryptocurrency bounced off the 50-day Simple Moving Average (SMA) but fell 3%, trading at $101,800 at the time of publication.
Daily BTC/USDT chart
The rapid decline caused $337.27 million in BTC futures contract liquidations. Long traders felt the heat of the pullback, witnessing liquidations of $308 million, while short liquidations were just over $29 million.
If selling pressure continues to rise, BTC could move towards $92,500, a stronger support level potentially reinforced by the 100-day SMA. However, if Bitcoin breaks below this level, it could signal a deeper market correction.
The Stochastic Oscillator (Stoch) is in the oversold region, indicating strong downward pressure but still potential for recovery.
