Long Bitcoin traders have been hurt in the last 24 hours by the drop in Bitcoin's price amid broader macroeconomic tensions and continued selling by long-term holders.
Investors who bet on the rise of Bitcoin suffered significant losses in the last 24 hours, as the cryptocurrency fell nearly 3%, approaching a new test of the $100,000 level.
The price drop comes as the dispute between US President Donald Trump and billionaire Elon Musk intensifies, and those who have held Bitcoin for more than 155 days continue to sell to secure profits.
The price of Bitcoin remains above $102,000
In the last 24 hours, Bitcoin reached $105,915 before falling to $100,500 within hours, according to CoinMarketCap. At the time of publication, Bitcoin remains at $102,180.
The drop surprised traders, with approximately $308 million in long positions liquidated during the same period, according to CoinGlass.
This occurred alongside an escalation in Musk's public dispute with Trump, with the Tesla chief taking to his platform X on June 5 to say that Trump's plan to impose widespread global tariffs "will cause a recession in the second half of this year."
Several cryptocurrency analysts share the same opinion. Swyftx's chief analyst, Pav Hundal, previously told Cointelegraph that there is a risk that US policymakers will delay monetary relief until they obtain "concrete data" on the impact of Trump's tariffs, risking a "slowdown in growth."
Trump said in a post on his Truth Social platform that ending Musk's subsidies and government contracts would save "billions of dollars" for the US government.
Musk responded that "in light of the president's statement regarding the cancellation of my government contracts, SpaceX will begin dismantling its Dragon spacecraft immediately," a statement he retracted hours later.
SpaceX's Dragon spacecraft is currently the only US-made option for sending astronauts into space.
Meanwhile, a growing number of long-term Bitcoin holders have been selling their holdings after Bitcoin reached new all-time highs of $111,970 on May 22, according to cryptocurrency analysis firm Glassnode.
Glassnode said in a market note on June 5 that "with long-term holders gradually applying selling pressure, the probability of a short-term correction continues to increase, particularly in the absence of a strong bullish catalyst to decisively push Bitcoin above [$111,800]."
