📰 Crypto Markets Are in the Red: When Political Drama and Whale Actions Shake Up Prices
On what would normally be a hopeful morning for crypto investors, today came like a sudden storm. Red charts dominated traders’ screens, and Bitcoin prices plunged to around $101,000, while Ethereum plunged below $2,500.
What happened?
Shortly after the market opened, news of a heated feud between two big names — Elon Musk and US President Donald Trump — began circulating widely. Twitter, Reddit, and Telegram were abuzz with speculation, crude quotes, and hot memes. Musk accused Trump of being involved in the Epstein case, while Trump responded by threatening to terminate government contracts with Musk’s companies. The financial world fell silent for a moment — then shuddered.
For crypto investors, this was more than just political drama. Musk is a symbol of technological power and innovation, while Trump is the ultimate power wielder with influence over regulation and the direction of the macro economy. When the two clashed, the market lost its balance. Uncertainty began to erode investor confidence.
But that wasn’t the only reason.
Behind the scenes, whales — aka large asset holders — are starting to move their funds. Several analyses suggest massive liquidation of overly leveraged positions. Once one position falls, the domino effect is inevitable. The BTC price, which recently touched $112,000, has become a profit-taking point. So, the selling action is chained. Ethereum is also dragged down, falling more than 7% in the last 24 hours.
Retail investors? Many of them are choosing to stay away. The transaction volume from small accounts appears to be shrinking. Bitcoin's volatility, which is usually the main weapon of this market, has also dimmed — from 56% to 46% in two months. This is a sign that the market is in a transition period — or fatigue.
