Crypto markets took a sharp hit as Bitcoin dipped below $103,000, with over $308 million in long positions liquidated amid rising political tension and global economic uncertainty.
Bitcoin’s value saw a steep 3% drop over the past 24 hours, tumbling from a daily high of $105,915 to a low of $100,500 before stabilizing around $102,180 (CoinMarketCap data). This sharp move triggered a wave of liquidations, as over-leveraged long positions were forcefully closed across major exchanges.
🔥 Key Liquidation Metrics (Source: CoinGlass):
$308 million in Bitcoin long positions wiped out
$982.55 million in total crypto market liquidations
Longs accounted for $891.63 million of total liquidations
Trump–Musk Showdown Shakes Investor Confidence
A public feud between former President Donald Trump and Elon Musk erupted on June 5, throwing fuel on an already unstable macroeconomic environment. Trump publicly vowed to end all federal subsidies for Musk, claiming it would save the U.S. "billions of dollars."
In response, Musk — CEO of Tesla and SpaceX — shocked markets by announcing the decommissioning of the Dragon spacecraft, the only active U.S.-made vehicle for human space travel. Although he walked back that statement hours later, the damage was done.
Musk also warned via X that Trump’s proposed global tariff agenda could “absolutely trigger a recession” in the second half of 2025, adding further anxiety to already-nervous markets.
On-Chain Data Signals Weak Momentum and Profit-Taking
According to a June 5 report from Glassnode, long-term holders (those holding BTC for 155+ days) have resumed profit-taking following Bitcoin’s recent all-time high of $111,970 on May 22.
“Selling pressure is slowly rising, and in the absence of a strong bullish narrative, a short-term correction is looking more likely,” the report warned.
Altcoins Follow Bitcoin in Broad-Based Sell-Off
Asset24h ChangeCurrent PriceEthereum (ETH)-7.25%$2,458XRP-4.35%$2.13Solana (SOL)-5.20%$147.68
What’s Next for Bitcoin and the Market?
Support Zone: $100,000 remains a crucial psychological support.
Key Resistance: Reclaiming $111,800 is essential to restore bullish confidence.
Macro Risk: Federal Reserve policy delays, rising political drama, and long-term holder profit-taking continue to keep the market under pressure.
Analysts from Swyftx warn that unless political clarity is restored, prolonged tariff threats and fiscal uncertainty could trap Bitcoin in a sideways trend — or even push it below the critical $100K mark.
📉 Investor Sentiment: Fragile
With nearly $1 billion in crypto liquidations, a heated political feud, and no clear bullish triggers, the short-term outlook for Bitcoin and broader crypto markets remains highly volatile.