Crypto Market Plunges After Musk-Trump Clash
Bitcoin and Ethereum fall sharply after Elon Musk and Donald Trump feud, causing nearly $1B in liquidations.
- Bitcoin and Ethereum prices dropped significantly in 24 hours.
- Nearly 227K traders were liquidated, totaling $983M.
- Long positions made up over 90% of the liquidations.
A Sudden Market Jolt
The crypto market was rocked after a very public fallout between Elon Musk and Donald Trump. According to data from Coinglass, this unexpected political drama spilled into the financial world, triggering sharp declines in major cryptocurrencies. Within 24 hours, Bitcoin (BTC) saw a drop of over 3%, while Ethereum (ETH) plummeted more than 7%.
The conflict between the two influential figures appears to have rattled investor confidence. While Musk has often influenced crypto markets through his statements, this time, the controversy seems to have sparked widespread panic among traders.
Massive Liquidations Across the Board
The aftermath was brutal. A total of 227,300 traders were liquidated in just one day. The combined value of these liquidations reached a staggering $983 million. What’s even more shocking is that $892 million of this came from long positions, indicating that many traders were betting on prices to rise — a bet that failed dramatically.
This marks one of the largest daily liquidation events in recent months and underlines how sensitive the crypto market remains to external, non-financial events. Both seasoned and retail traders felt the heat, reinforcing the volatile nature of crypto investing.
What This Means for Traders
Events like these highlight the unpredictability of crypto markets, especially when influenced by global personalities. For investors, this is a reminder to manage risk carefully and not rely solely on market sentiment or celebrity endorsements. As political tensions mix with financial markets, volatility is likely to remain a dominant theme in the crypto space.
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