Crypto Market Sees $952M Liquidation Amid Trump-Musk Exchange

Crypto Market Sees $952M Liquidation Amid Trump-Musk Exchange

In a significant turn of events, a Twitter exchange between former President Donald Trump and Tesla CEO Elon Musk led to a $952 million liquidation across the crypto market in the last 24 hours.

The event underscores market volatility risks and its impact on traders globally.

A public Twitter exchange between Donald Trump and Elon Musk caused a massive $952 million liquidation in crypto markets, with Bybit and Binance hit hardest. The exchange led to significant long position liquidations , pointing to the vulnerability of over-leveraged trades.

Donald Trump and Elon Musk played pivotal roles in this incident. “Musk is going crazy,” Trump commented, adding fuel to the already volatile market. Musk’s response of linking Trump to Jeffrey Epstein’s files further spurred the market reaction. There were no fresh statements from exchange leaders like Binance’s CZ or Bybit’s Ben Zhou.

The intense liquidation wave affected multiple cryptocurrencies. Bitcoin faced substantial losses, with Ethereum, Solana, and Dogecoin impacted . Additionally, leveraged positions on DeFi protocols saw spillover effects, impacting market spreads and liquidity .

While no new regulatory statements were issued, the event highlights significant market risks driven by influential figures’ statements. Crypto asset prices dropped, and trading volumes surged as markets reacted to the unexpected exchange.

Future market reactions could involve tighter risk management and increased scrutiny on public figures’ statements impacting crypto prices. Although no regulatory changes are noted, investor awareness of volatility risks may heighten following this incident.

Elon Musk, CEO, Tesla/SpaceX, “I linked Trump to Jeffrey Epstein’s files.”