#TrumpVsMusk
Collapse of the cryptocurrency market: liquidations exceeding one billion dollars after escalating dispute between Musk and Trump.
The debate between Elon Musk and U.S. President Donald Trump intensified after Musk criticized Trump-supported government spending legislation, describing it as a disgusting violation that increased the financial deficit. Trump responded by threatening to cut government contracts and support for Musk's companies like Tesla and SpaceX, prompting Musk to announce a temporary halt of the Dragon spacecraft before later backtracking.
Immediate market effects:
- Bitcoin: Its price fell by 4% to reach $100,500, with liquidations amounting to $342 million for long positions (expected to rise).
- Ethereum: Led the collapse of alternative currencies with a 7% loss, reaching a price of $2,400, with liquidations of $260 million in futures contracts.
- Other currencies:
- Dogecoin: Fell by 8% due to its previous association with Musk's tweets.
- Solana, Ripple, and Binance Coin: Losses ranged between 4-6%.
Multiplying factors of the crisis:
1. Exit of Bitcoin ETF funds: Recorded $278 million in withdrawals, reflecting a decline in institutional confidence.
2. Expiration of futures contracts: The collapse coincided with the expiration date of futures contracts, increasing market volatility. 3. Side effects:
