The conflict between Trump and Musk triggers a Bitcoin sell-off, with $308 million in long positions liquidated as BTC tests $100,000
The price of Bitcoin (BTC) experienced sharp turbulence over the last 24 hours, falling nearly 3% to $100,500 before slightly recovering to $102,180, according to CoinMarketCap. This volatility was fueled by two main forces: rising macroeconomic anxiety and the public conflict between U.S. President Donald Trump and Tesla/SpaceX CEO Elon Musk.
$308 million in long BTC positions liquidated
Traders who opened long positions on Bitcoin were surprised by the drop, leading to the liquidation of approximately $308 million in long positions, according to CoinGlass data. The cryptocurrency fell from an intraday high of $105,915 to $100,500, triggering a wave of stop-loss triggers and forced liquidations on major exchanges.
The situation mirrored a broader cryptocurrency sell-off, with total liquidations exceeding $982 million, of which over $891 million came from long positions.
The conflict between Trump and Musk heightens market anxiety
The market disruption coincides with the escalation of the conflict between Trump and Musk. On June 5, Musk criticized the global tariffs proposed by Trump, claiming they could "cause a recession in the second half of this year." Trump responded on his platform Truth Social, suggesting that canceling government contracts with Musk would save the U.S. "billions and billions."
Musk exacerbated the situation by announcing that SpaceX would begin writing off its Dragon spacecraft, the only U.S.-built vehicle currently capable of delivering astronauts to space, although he later retracted his statement.
This high-profile conflict has injected uncertainty into investor sentiment, particularly regarding the federal political course and the stability of the tech sector, two aspects closely tied to confidence in the cryptocurrency market.
Long-term Bitcoin holders join the sell-off
Adding selling pressure, the analytical platform Glassnode reported that long-term Bitcoin holders—those holding BTC for more than 155 days—have been gradually selling their assets since Bitcoin reached its all-time high of $111,970 on May 22.
Glassnode warned in a market update on June 5:
"As long-term holders gradually exert selling pressure, the likelihood of a short-term correction continues to rise, especially in the absence of a strong growth catalyst."
These strategic exits by experienced holders amplify the negative dynamics, especially when new bullish catalysts remain elusive.
Altcoins join the decline
The sell-off was not limited to Bitcoin. Major altcoins were also affected:
Ethereum (ETH) fell by 7.25%
XRP fell by 4.35%
Solana (SOL) decreased by 5.20%
This widespread correction indicates a shift in overall market sentiment, likely influenced by macroeconomic fears and a redistribution of traders ahead of the expected volatility.
What's next for Bitcoin?
Despite short-term weakness, Bitcoin is still trading above the key psychological level of $100,000, which some analysts consider a potential support zone. However, the combination of political drama, institutional uncertainty, and the exit of long-term holders could keep prices under pressure unless a new catalyst emerges.
The post initially appeared on CryptosNewss.com