Bitcoin leads crypto market slump as Trump and Musk trade punches

Bitcoin slid to fresh lows on Thursday amid a broader market pullback, triggered by an unexpected public clash between two of the most influential figures in tech and politics.

A public fallout between US President Donald Trump and Tesla CEO Elon Musk was not on many’s bingo cards for the year, and the unexpected spat quickly sent shockwaves through the markets. Following a series of public exchanges over political disputes, the crypto market took a hit, leading to sharp declines across multiple assets.

According to crypto.news data, market giant Bitcoin (BTC), which had held relatively steady throughout the week, dropped sharply to a new low of $100,501. The pullback marks an approximate 6% slip below this week’s high point of $106,000, negating the anticipation for the token to maintain an upward trend. 

While BTC has since recovered slightly to trade at $103,376 at press time, the abrupt price decline shook the market up, with approximately $308 million in long positions liquidated within hours, according to CoinGlass data.

This contributed to a broader sharp decline across the market. Over the past 24 hours, around 227,300 traders saw their positions wiped out, with total liquidations reaching $983 million. Out of this number, longs accounted for the majority at $892 million. Crypto exchange Bybit accounted for a large portion of the liquidations at $354 million, followed closely by Binance.

Other major altcoins fell even deeper in the downturn. Ethereum (ETH), Solana (SOL), and Cardano (ADA) were some of the day’s biggest losers, shedding roughly 7%, 8%, and 10%, respectively. The memecoin sector was not spared. Dogecoin (DOGE) plunged 20%, while Bonk (BONK) and Dogwifhat (WIF) dropped 13% and 11%, among others.

While many assets have edged up alongside Bitcoin in a modest rebound, overall market sentiment remains shaken. The Cryptocurrency Fear & Greed Index has shifted from ‘Greed’ to ‘Fear’ territory, showing that investors are growing cautious.