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A wave of panic-driven selling swept through the cryptocurrency market over the past 24 hours, triggering nearly $1 billion in liquidations and underscoring just how brittle sentiment remains in the face of macroeconomic and political shocks.
According to data compiled by Coinglass, more than $980 million in leveraged positions were liquidated in the span of a single day, with long positions accounting for over $876 million of the total. The data shows that over 223,000 traders were affected, although the true magnitude could be even higher, as the figures are drawn from publicly available sources and may not capture the full scope of losses across all platforms.
A Fragile Market Meets Political Turbulence
At the center of the market’s swift downturn was an unexpected and very public fallout between President Donald Trump and Tesla CEO Elon Musk, whose online spat over tax and spending policies sparked concern among investors already grappling with a volatile macroeconomic environment.
Musk’s blunt criticism of Trump’s new economic bill — which he labeled a "disgusting abomination" — ignited speculation over political instability and its potential ripple effects. Combined with renewed fears over escalating tariffs, the incident proved too much for a market heavily skewed toward leveraged optimism.
“The market was already stretched, and this added shock created a cascading effect,” said Vincent Liu, Chief Investment Officer at Kronos Research. “When sentiment is this fragile and leverage this high, even a modest trigger can cause massive liquidations through automatic sell-offs.”
Bitcoin, Ether Hit Hard
The brunt of the liquidations hit Bitcoin and Ether, the two largest cryptocurrencies by market cap. Bitcoin alone saw $341.7 million in liquidated positions, with the overwhelming majority — roughly 90% — coming from long trades. Ether was close behind with $285.6 million in liquidations. Other popular tokens like Solana (SOL), XRP, and Dogecoin (DOGE) also experienced substantial sell-offs.
Bitcoin, which had recently been consolidating near $105,000 after briefly surpassing $111,800, slid sharply to touch lows near $100,000 before stabilizing. At the time of publication, BTC had recovered slightly to around $103,333, according to The Block’s price tracker.
“Bitcoin was already on shaky technical ground, hovering near key support after failing to hold recent highs,” noted Nick Ruck, Director at LVRG Research. “This political rift poured fuel on the fire, spooking traders into closing positions, especially those riding on margin.”
Liquidation Chain Reactions
The crypto market’s tendency toward cascading liquidations — where falling prices trigger automatic position closures that, in turn, drive prices lower — was on full display. Analysts point to excessive leverage as a core structural vulnerability. In bullish phases, margin amplifies gains. But in moments of stress, it turns corrections into flash crashes.
“The system isn’t designed to absorb political drama gracefully,” said Liu. “Automated risk engines start liquidating, and it quickly turns into a stampede.”
Indeed, the liquidation event served as a stark reminder that, despite increasing institutional involvement and technological sophistication, the crypto market remains highly sensitive to external shocks — especially when traders are overexposed.
Market Eyes Next Macro Moves
Looking ahead, market participants are now focusing on key U.S. economic data releases, starting with Friday’s employment report and followed by the Consumer Price Index (CPI) data due on June 11. These releases are widely expected to influence the Federal Reserve’s next steps on interest rates and will likely dictate near-term price action.
“Right now, everything depends on macro developments,” Liu said. “U.S.–China trade tensions, strength of the U.S. dollar, and capital flows from institutional investors are all critical signals. The market is in a fragile state, and until leverage resets, we could see continued volatility.”
Despite the sell-off, some analysts believe this reset could ultimately prove healthy. By shaking out excess leverage and forcing risk management discipline, the market may be better positioned for sustainable growth — provided macro conditions don't worsen further.
Conclusion
The past 24 hours have been a harsh reminder of crypto’s volatility when caught in the crosshairs of politics and economic uncertainty. Nearly $1 billion in liquidations — mostly from bullish bets gone wrong — highlights how quickly sentiment can sour. With influential voices like Trump and Musk stirring the pot, and macro data looming, traders will need to tread carefully in the days ahead.
#TrumpVsMusk #CryptoNews
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As Bitcoin (BTC) continues to cement its reputation as a resilient macro asset, the world’s largest cryptocurrency is currently trading above $101,500, holding firm even as global markets react to renewed tariff tensions out of the United States. With institutional and corporate accumulation reaching unprecedented levels — now exceeding $85 billion in BTC holdings — analysts are increasingly confident that Bitcoin is on track to test the $120,000 mark in the coming months.
Market Steady Despite Geopolitical Turbulence
Recent geopolitical developments, particularly the Trump administration’s fresh round of tariff announcements, have introduced volatility into both traditional and crypto markets. However, Bitcoin appears to be weathering this storm with poise. While other digital assets have experienced more pronounced fluctuations, Bitcoin's performance remains relatively stable, a trend noted by Semir Gabeljic, Director of Capital Formation at Pythagoras Investments.
“Bitcoin remains relatively strong, with lower volatility compared to other digital assets,” Gabeljic stated, underscoring the asset’s growing maturity in the face of macroeconomic headwinds.
This stability suggests that Bitcoin is increasingly being viewed not merely as a speculative tool, but as a store of value — a narrative that gains more weight as institutional players continue to expand their exposure.
Prediction Markets Reflect Growing Optimism
The confidence surrounding Bitcoin’s long-term trajectory is not just anecdotal — it is quantifiable. According to data from Polymarket, a blockchain-based prediction platform, there is a 69% probability that Bitcoin will reach at least $120,000 by the end of 2025.
These prediction markets are often viewed as real-time barometers of market sentiment, and this data indicates broad-based optimism among both retail and institutional traders.
Meanwhile, insights from FlowDesk, a Paris-based market maker, further support this outlook. In a recent market update, the firm noted:
“The market is clearly coiling, waiting to break out of a narrow band just below all-time high.”
This consolidation, combined with subtle shifts in positioning from BTC to altcoins, hints at a potential market rotation — but not at the expense of Bitcoin’s foundational strength.
On-Chain Metrics and Funding Rates Align with Bullish Outlook
On-chain and derivative market indicators are painting a similarly bullish picture. While funding rates on major derivatives platforms such as Binance have seen a slight decline — typically an indicator of reduced speculative leverage — there has been a concurrent increase in on-chain borrowing activity.
This uptick suggests that traders may be positioning themselves for an impending breakout, leveraging decentralized lending protocols to prepare for potential upside. Historically, increases in on-chain borrowing have preceded sharp price movements, further reinforcing bullish expectations.
Moreover, long-term holders continue to accumulate, with a growing percentage of supply moving into cold storage and inactive wallets. These supply-side dynamics are reducing selling pressure and creating a supply crunch that could serve as a launchpad for Bitcoin’s next major price rally.
Corporate Holdings Surpass $85 Billion
Perhaps the most compelling development supporting Bitcoin’s trajectory is the surge in corporate accumulation. Publicly listed companies now collectively hold over 809,100 BTC, valued at approximately $85 billion — a figure that has nearly doubled in just 12 months.
This massive inflow is attributed not only to Bitcoin’s long-term upside but also to recent regulatory tailwinds. Changes in accounting standards now enable companies to more easily recognize unrealized gains on digital assets, reducing financial reporting friction and enhancing balance sheet strategies.
Bitcoin is increasingly being recognized as a strategic reserve asset, especially by companies seeking a hedge against inflation, currency debasement, and geopolitical uncertainty. This institutional demand serves as a powerful floor beneath current price levels and adds structural strength to the market.
Semir Gabeljic echoed this sentiment, stating:

“The expectation of a continued strong Bitcoin remains,”

highlighting that corporate and institutional support is not merely opportunistic, but strategic and long-term.
What Lies Ahead?
While near-term risks remain — from interest rate fluctuations to regulatory shifts and global trade dynamics — the structural underpinnings of the current market suggest strength rather than fragility. Bitcoin’s ability to maintain consolidation above $101,500 despite external headwinds reflects maturing market behavior and investor confidence.
If momentum continues to build, particularly from the corporate and institutional side, Bitcoin’s march toward the $120,000 target may be a question of when, not if.
As the second half of 2025 unfolds, all eyes will be on key technical levels, funding dynamics, and macro signals. But perhaps most critically, the growing wall of capital entering the space — from companies, hedge funds, and sovereign entities alike — may prove to be the driving force behind Bitcoin’s next historic run.
Conclusion
Bitcoin has once again proven its resilience in the face of geopolitical and market turbulence. With corporate holdings at an all-time high, institutional sentiment bullish, and technical signals aligning, the stage appears set for another leg up. While nothing in crypto is guaranteed, the current momentum suggests Bitcoin’s journey toward $120K is both plausible and potentially imminent.
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