- Bitcoin plunged to new lows following a surprising public feud between Donald Trump and Elon Musk, triggering a sharp market-wide selloff.
- This sudden drop led to massive liquidations and shifted investor sentiment from greed to fear across the cryptocurrency space.
Unexpected Clash Sends Shockwaves Through Crypto
The cryptocurrency market took an unexpected hit this Thursday as BTC plunged to fresh lows, dragging the entire crypto space down with it. The trigger? A surprising public feud between two high-profile figures — former US President Donald Trump and Tesla CEO Elon Musk — that nobody saw coming but that quickly rattled investor confidence.
Their heated exchanges over political disputes unleashed a wave of uncertainty, sparking panic selling across major crypto assets. What started as a personal spat spilled over into the markets, proving how sensitive crypto prices can be to external influences beyond traditional financial news.
Bitcoin Sharp Decline and Market Liquidations
Bitcoin (BTC), the flagship cryptocurrency, had remained relatively stable earlier this week but suddenly dropped about 6% from its recent high of $106,000, touching a new low near $100,501. This sudden dip wiped out bullish momentum and forced a massive shakeout among traders.
According to CoinGlass data, traders liquidated roughly $308 million worth of long Bitcoin positions in just a few hours.This was part of a wider cascade of liquidations totaling nearly $983 million across the crypto market in the last 24 hours, with long positions accounting for $892 million of that figure.Major exchanges like Bybit and Binance took the hardest hits, with Bybit alone liquidating $354 million in positions.
Altcoins and Memecoins Bear the Brunt
The fallout wasn’t limited to Bitcoin. Other leading altcoins suffered deeper losses: Ethereum (ETH) fell around 7%, Solana (SOL) dropped 8%, and Cardano (ADA) declined by 10%. The memecoin sector, often more volatile, faced severe downturns — Dogecoin (DOGE) plunged a staggering 20%, while Bonk (BONK) and Dogwifhat (WIF) dropped 13% and 11%, respectively.
While Bitcoin and several other coins managed a modest rebound following the sell-off, overall market sentiment remains fragile. The widely watched Cryptocurrency Fear & Greed Index has now shifted from ‘Greed’ to ‘Fear,’ indicating growing caution among investors.
What’s Next for Crypto?
The Trump-Musk clash highlights how external social and political factors can quickly influence crypto market psychology. As traders digest this unexpected drama, volatility is likely to remain elevated in the near term. For now, the crypto community watches closely—waiting to see if market confidence can recover or if the fallout will deepen the current slump.
