Crypto Market Sees $970 Million Liquidations Amid Trump Musk Feud

The cryptocurrency market experienced significant volatility over the past day, with Bitcoin leading the charge in price swings. The digital asset saw a sharp decline from a high of $105,800 to a low of $100,400, followed by a recovery to $104,100. Despite the recovery, Bitcoin is still down by less than 2% over the past day. Other cryptocurrencies, such as Ethereum and Dogecoin, have not fared as well, with Ethereum down almost 6% and Dogecoin down about 7%.

The volatility in the cryptocurrency sector was sparked by a public feud between US President Donald Trump and Tesla founder Elon Musk. The dispute began when Trump expressed disappointment with Musk's criticism of the One Big Beautiful Bill Act, which Musk had previously described as a ‘disgusting abomination.’ The two exchanged heated remarks on social media, with Musk accusing Trump of being involved in the Epstein files, stating that this was the real reason the files had not been made public.

The market turmoil has resulted in a significant amount of liquidations in the derivatives market. According to data, the cryptocurrency market has seen liquidations amounting to $970 million over the last 24 hours. Of this total, $854 million, or 88%, came from long investors, who were caught off guard by the sudden price drop. Bitcoin and Ethereum were the most affected, with liquidations totaling $346 million and $286 million, respectively. This event is commonly referred to as a ‘long squeeze,’ where a majority of the liquidations come from long positions.

The feud between Trump and Musk has had a ripple effect on the cryptocurrency market, causing significant price swings and liquidations. The volatility highlights the sensitivity of the market to external factors, such as public disputes between high-profile figures. As the market continues to evolve, it will be important for investors to stay informed and adapt to changing conditions.