XRP News Today: Bitcoin Drops 3% Amid Trump Musk Feud and Long-Term Holder Sales

Bitcoin experienced a significant decline over the past 24 hours, dropping nearly 3% and nearing the $100,000 level. This price drop coincided with an intensifying feud between US President Donald Trump and billionaire Elon Musk, as well as a trend of long-term Bitcoin holders selling their assets to secure profits.

Bitcoin's price reached a high of $105,915 before plummeting to $100,500 within a short period. At the time of reporting, Bitcoin was holding at $102,180. The decline in price caught many traders off guard, resulting in the liquidation of approximately $308 million in long positions.

The escalation in the public feud between Musk and Trump contributed to the market volatility. Musk, via his X platform, criticized Trump's plan for global tariffs, stating that it could lead to a recession in the latter half of the year. Several crypto analysts echoed this sentiment, warning that US policymakers might delay monetary easing until they have concrete data on the impact of Trump's tariffs, which could slow economic growth.

Trump, in response, suggested that terminating Musk's government subsidies and contracts would save the US government billions of dollars. Musk initially reacted by announcing that SpaceX would begin decommissioning its Dragon spacecraft, a statement he later retracted. The Dragon spacecraft is currently the sole US-made option for transporting astronauts to space.

In addition to the political tensions, long-term Bitcoin holders have been selling their holdings following Bitcoin's new all-time high of $111,970 on May 22. According to crypto analytics firm Glassnode, the gradual sell pressure from long-term holders increases the likelihood of a short-term correction, especially without a strong catalyst to push Bitcoin decisively above $111,800.

Other major cryptocurrencies also saw sharp declines over the past 24 hours. Ether (ETH) dropped by 7.25%, XRP (XRP) fell by 4.35%, and Solana (SOL) slid by 5.20%. The broader crypto market experienced total liquidations of $982.55 million, with long positions accounting for $891.63 million of that amount.