By Key Points
- Bitcoin dropped to $101,579 amid political-driven market panic
- Nearly $1B in leveraged crypto positions liquidated in 24 hours
- Ongoing Trump-Musk feud spooks both equity and crypto markets
- Analysts warn Bitcoin could test $95K-$98K if liquidations continue
Bitcoin risks dropping below $100K as nearly $1 billion in leveraged crypto positions were liquidated in the past 24 hours. The top cryptocurrency slid to $101,579, a 3.5% decline in a day and down 4.5% for the week.
A political clash between Elon Musk and U.S. President Donald Trump is fueling uncertainty in the market. The public spat is pushing traders to exit risky positions, causing a cascading wave of liquidations across major exchanges.
Crypto Liquidations Heatmap. Source: Coinglass
Nearly $1B Liquidated as Political Drama Sparks Panic
Crypto traders faced nearly $964.84 million in liquidations over the past day. A staggering $877.17 million came from long positions as investors scrambled to reduce risk exposure.
Bitcoin alone accounted for $243.29 million of the total, with Ethereum close behind at $206.96 million. More than 225,000 traders were liquidated during this period, according to Coinglass.
The liquidations followed a sharp selloff triggered by the growing political feud between Musk and Trump. The dispute centers on Trump’s $1.6 trillion “One Big Beautiful Bill Act.” Musk criticized the bill for increasing the national deficit and cutting key EV subsidies, affecting Tesla directly.
It’s official:
Elon Musk has now upset BOTH Republicans and Democrats.
This is generally a sign you are doing *something* correctly.
In fact, Elon has now spoken out against both parties with the same goal in mind all along: END US deficit spending.
As we have been writing on…
— The Kobeissi Letter (@KobeissiLetter) June 5, 2025
In retaliation, Trump threatened to sever federal contracts with Musk’s companies—Tesla, SpaceX, and Starlink—sending Tesla stock down 15%. Musk fired back by calling for Trump’s impeachment and hinting at damaging ties to unreleased Epstein files.
Reports indicate the White House held emergency meetings to assess potential economic fallout, further spooking investors.
This unusual intersection of politics and markets is unsettling traders across sectors. Bitcoin, often viewed as a hedge or uncorrelated asset, is now reacting to global political headlines.
#Bitcoin | The daily RSI structure is an important indicator to follow.
Right now, the daily RSI is still pointing downward, but we may be a week away from a potential reversal signal.#BTC $BTC 🔗https://t.co/ziTc5rRfXa pic.twitter.com/AoheHY7aQ9
— Kevin Svenson (@KevinSvenson_) June 6, 2025
Will Bitcoin Hold the $100K Support Level?
Bitcoin now hovers dangerously close to the critical $100K support level. Analysts warn that a break below this psychological threshold could trigger more algorithmic selling and fresh liquidations.
If liquidation pressure continues, Bitcoin could test the $95K–$98K range before finding solid support.
The ongoing Musk-Trump feud underscores how crypto markets are increasingly tied to geopolitical and political developments. Traders are being reminded that Bitcoin’s volatility isn’t driven solely by blockchain activity or monetary policy. Public feuds between billionaires and political leaders can also shake investor confidence.
Despite an otherwise bullish macro backdrop—with rate cuts expected later this year and institutional demand rising—this political turmoil is keeping the crypto market on edge.
Unless tensions cool or a new positive catalyst emerges, Bitcoin’s short-term outlook remains fragile.
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