Recent events have led to a dramatic surge in crypto liquidations, with the total surpassing $831 million in just 24 hours. This turmoil largely stems from the escalating conflict between Elon Musk and former U.S. President Donald Trump. Investors are rattled, resulting in $765 million of liquidations predominantly hitting long traders who were caught off guard in the volatile environment.
Both Bitcoin and Ethereum have experienced substantial swings, with the fear and greed index for Bitcoin dropping from 62% to 57%, indicating a shift towards bearish sentiments. The relationship between Musk and Trump, once friendly, has soured, heightening anxiety among market participants. Trump has criticized Musk’s calls for impeachment, emphasizing his own economic policies that include significant cuts in congressional expenses.
As market sentiments mirror broader stock market trends, the atmosphere is thick with apprehension about a possible U.S. recession projected for the second half of 2025. Musk’s warning about the adverse effects of Trump’s tariffs adds to this uncertainty, with gold potentially outperforming stocks if economic downturns materialize. Experts suggest that Bitcoin, viewed as digital gold, might have room for recovery, but caution remains essential for current traders.
Both Bitcoin and Ethereum have experienced substantial swings, with the fear and greed index for Bitcoin dropping from 62% to 57%, indicating a shift towards bearish sentiments. The relationship between Musk and Trump, once friendly, has soured, heightening anxiety among market participants. Trump has criticized Musk’s calls for impeachment, emphasizing his own economic policies that include significant cuts in congressional expenses.
As market sentiments mirror broader stock market trends, the atmosphere is thick with apprehension about a possible U.S. recession projected for the second half of 2025. Musk’s warning about the adverse effects of Trump’s tariffs adds to this uncertainty, with gold potentially outperforming stocks if economic downturns materialize. Experts suggest that Bitcoin, viewed as digital gold, might have room for recovery, but caution remains essential for current traders.
