The cryptocurrency market has experienced a significant downturn due to the feud between Elon Musk and U.S. President Donald Trump, crypto liquidations, and whale offloadings. Amid today’s crypto market crash, total valuation dropped 3.03% to $3.2 trillion.
In just a few hours, Bitcoin has already dropped to $101,928.79, and Ethereum has plunged 3.73% to $2489. Furthermore, Ripple’s XRP is also down 3.34% to $2.13. All three major cryptocurrencies are testing out their key support levels, and if they fail to hold, a catastrophic downturn could be imminent.
1. Crypto Liquidations of Over $595 Million
In the widespread liquidations totalling over $595 million in the past 24 hours. According to data from liquidation heat maps, over 156,000 traders were rekt as major crypto assets like Bitcoin (BTC) and Ethereum (ETH) saw sharp declines. The largest single liquidation occurred on Binance as the ETH/USDT pair saw a staggering $9.48 million sell-off.
Crypto Long Liquidations, Source: Coinglass
Bitcoin and Ethereum together accounted for more than $314 million in liquidations, with BTC at $171 million and ETH at $143 million, respectively. Other top assets include Solana, dogecoin, and XRP at $40 million, $22.52 million, and $16.6 million, respectively.
In Long vs. Shorts, over $547 million of the liquidation was long positions, which shows that bulls were in for a surprise with this crash. Whilst, short liquidations hit $50.08 million.
2. Elon Musk vs. Donald Trump Feud Intensifies
One big reason for the market to go down the rabbit hole is the surprising fallout between Elon Musk and Donald Trump. The two billionaires who once united for the election have suddenly been on opposite sides on the budget views.
To make it clear, Elon Musk has a very clear message for Donald Trump: ‘One Big Beautiful Bill.’ He said,
“Call your Senator. Call your Congressman, Bankrupting America is NOT ok! KILL the BILL.”
However, Trump responded very strongly. Trump asserted that ending Musk’s federal support could save “billions” for the U.S. Hours later, Tesla stock dropped over 17%, wiping out $100 billion in market capitalization. This negative sentiment also dripped into the crypto market, causing the recent crash.
3. Crypto Whales Dump BTC, ETH XRP Among Others
According to Whale Alert, in the past one hour, a whale offloaded 917 BTC worth $94.30 billion to Coinbase Institutional. Moreover, a larger investor dumped 26.67 million XRP to Coinbase , signaling another bearish move. Typically, large crypto movements from wallet to exchange indicate a selloff move.
Thus, these transactions could have been responsible for the crypto market’s downfall amid macroeconomic pressures as the U.S. Federal Reserve shows no signs of cutting interest rates. Further, 2.86 trillion Shiba Inu (SHIB) tokens were dumped onto Coinbase Institutional, again suggesting a sell move.
