Recent tension between President Donald Trump and Elon Musk sparked volatility in the cryptocurrency markets, resulting in approximately $988 million in liquidations, primarily affecting bullish positions. Bitcoin fell below $101,000 before staging a modest recovery. In particular, $342 million of Bitcoin was liquidated, while Ether experienced $286 million in liquidations as traders reacted to the news.
The CoinDesk 20 Index, which tracks major cryptocurrencies, dropped over 5%, with altcoins such as Dogecoin (DOGE) and Cardano (ADA) each losing over 6% within 24 hours. The largest hits were observed on exchanges like Bybit and Binance, with Bybit alone accounting for nearly $354 million in forced liquidations overall. The dispute gained attention as Trump accused Musk of being irrational, threatening to revoke government contracts with Musk's companies, while Musk retaliated by linking Trump to controversial figures related to past scandals.
Market experts note that high-leverage positions, especially in memecoins, contributed to increased volatility, as traders scrambled to exit their positions amid rapid price declines. Sizable liquidations typically signal market extremes, leading some analysts to suggest that a price reversal might be on the horizon as sentiment shifts dramatically.
The CoinDesk 20 Index, which tracks major cryptocurrencies, dropped over 5%, with altcoins such as Dogecoin (DOGE) and Cardano (ADA) each losing over 6% within 24 hours. The largest hits were observed on exchanges like Bybit and Binance, with Bybit alone accounting for nearly $354 million in forced liquidations overall. The dispute gained attention as Trump accused Musk of being irrational, threatening to revoke government contracts with Musk's companies, while Musk retaliated by linking Trump to controversial figures related to past scandals.
Market experts note that high-leverage positions, especially in memecoins, contributed to increased volatility, as traders scrambled to exit their positions amid rapid price declines. Sizable liquidations typically signal market extremes, leading some analysts to suggest that a price reversal might be on the horizon as sentiment shifts dramatically.
