XRP News Today: Bitcoin Drops 3% Amid Trump Musk Feud, $308 Million in Longs Liquidated

The recent escalation in the public feud between former US President Donald Trump and billionaire Elon Musk has had a notable impact on the cryptocurrency market, particularly Bitcoin. Over the past 24 hours, Bitcoin's price experienced a significant decline, dropping nearly 3% and nearing the $100,000 level. This price dip was accompanied by a liquidation of approximately $308 million in long positions, highlighting the market's sensitivity to macroeconomic tensions and the influence of high-profile figures.

The price decline began with Bitcoin reaching a high of $105,915 before plummeting to $100,500 within a short period. At the time of the report, Bitcoin was holding at $102,180, reflecting a 3.61% decrease over the past seven days. The drop in Bitcoin's price was exacerbated by the intensifying feud between Trump and Musk, with Musk warning on his X platform that Trump's proposed global tariffs could trigger a recession in the latter half of the year. This statement added to the broader macroeconomic tensions, contributing to the sell-off.

Trump, in response to Musk's comments, suggested that terminating Musk's government subsidies and contracts could save the US government billions of dollars. Musk initially reacted by announcing the decommissioning of SpaceX's Dragon spacecraft, a move that was later walked back. The back-and-forth between the two influential figures added to the market's volatility, as investors reacted to the potential implications of their statements.

The price decline also coincided with an increase in sell-offs by long-term Bitcoin holders, who have been locking in profits following Bitcoin's recent all-time high of $111,970 on May 22. According to crypto analytics firm Glassnode, the gradual sell pressure from long-term holders has increased the probability of a short-term correction, particularly in the absence of a strong upside catalyst to push Bitcoin decisively above its previous highs.

The impact of the Trump-Musk feud was not limited to Bitcoin. Other major cryptocurrencies, including Ether (ETH), XRP (XRP), and Solana (SOL), also experienced sharp declines over the past 24 hours. This broader market sell-off underscores the interconnected nature of the cryptocurrency ecosystem and the influence of external factors on market sentiment.

The liquidation of long positions and the broader market sell-off highlight the challenges faced by investors in navigating the volatile cryptocurrency market. The feud between Trump and Musk, combined with broader macroeconomic tensions, has created an environment of uncertainty, leading to significant price movements and liquidations. As the market continues to evolve, investors will need to remain vigilant and adapt to the changing landscape, taking into account the potential impact of high-profile figures and macroeconomic developments on cryptocurrency prices.