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Why is Crypto Market Crashing Today?
The crypto market has taken a sharp downturn today, with Tesla’s massive drop of 15% following Elon Musk’s public spat with President Donald Trump. The clash between the two powerful figures has sent shockwaves through the cryptocurrency space, causing a ripple effect that has affected not only Bitcoin but also altcoins and other digital assets.
Bitcoin, in particular, took a significant hit today, dropping over 4% to $100,500 before recovering slightly. This marks the first time in a month that the king of cryptocurrencies has dipped below the psychologically important $102,000 level. Other coins like Solana and SUI also fell precipitously, with losses exceeding 7%. Ethereum dropped by 7.25%, XRP lost 4.35%, while Solana shed 5.2% before partially recovering.
Interestingly, even TRUMP meme coin was not spared, crashing a staggering 9.3% during the Musk-Trump fight. Coinbase’s stock also fell 4.6%, MicroStrategy dropped by 2.4%, and miners like MARA, Riot, and Core Scientific experienced losses of around 5%.
The massive sell-off in the cryptocurrency market has seen nearly $1 billion in crypto positions liquidated over the past 24 hours, with a large portion of these liquidations coming from long bets on Bitcoin’s price performance. According to data from Glassnode, many long-term Bitcoin holders began selling their assets after BTC hit an all-time high of $111,970 in May, increasing the likelihood of a short-term price decline.
ETH futures also saw an unexpected 5.5% drop in open interest and $260 million in long liquidations, further highlighting the extent to which investor sentiment has soured in response to the Musk-Trump controversy.
While institutional investors have been actively buying up Bitcoin and other digital assets due to rate cuts and rising demand, politics appears to be playing a significant role in derailing this positive momentum.
Source: coinpedia.org
