Bitcoin Drops 3.3% Amid Musk-Trump Twitter Feud

Bitcoin's value experienced a notable decline on June 2025, dropping by 3.3%. This downturn was triggered by a public Twitter dispute between Elon Musk and Donald Trump, highlighting the sensitivity of crypto markets to social media influences. The clash resulted in over $1 billion in liquidations, affecting more than 220,000 traders globally, with long positions being the most impacted. Leading exchanges reported substantial losses, particularly in Bitcoin and Ethereum, intensifying scrutiny on the influence of social media on crypto markets.

The liquidations were primarily due to leveraged positions collapsing under the price shifts caused by the Twitter feud. This event marked the largest long liquidation since February 25, according to CoinGlass. The incident underscores the historical pattern of crypto market volatility being influenced by social media commentary from key public figures. Experts suggest that this sensitivity to external commentaries is likely to continue, with the neutral Fear and Greed Index indicating a muted panic response.

The Musk-Trump feud's impact on cross-market dynamics is significant. Tesla's stock, influenced by Musk's actions, saw a noticeable dip, reflecting investor concerns over his focus on personal disputes rather than corporate leadership. This decline contributed to a bearish sentiment in equities, which often spills into cryptocurrencies. For crypto traders, this presents both short-term volatility trading opportunities on assets like Dogecoin or Bitcoin, and long-term accumulation of crypto-related stocks during dips. Sentiment analysis shows a spike in negative mentions of Musk, which could further weigh on Tesla and related crypto assets if the dispute remains unresolved. Staying agile with stop-losses and monitoring Musk’s next moves will be critical for navigating this market volatility.