Bitcoin Dives Below $101K as $1B in Longs Vanish After Musk vs Trump Fallout

Bitcoin tumbled under $101,000, triggering nearly $1 billion in long liquidations after a sharp market drop. Tensions from a Musk-Trump clash and global risk pressures fueled the volatility.

Bitcoin experienced a sharp correction over the past 24 hours, briefly falling to $100,900 before rebounding to $102,592, according to CoinMarketCap data. The 2.48% decline ignited a storm of liquidations, wiping out close to $1 billion in leveraged long positions across the crypto market.

Data from Coinglass confirmed that 227,964 traders were liquidated during the selloff, totaling $985.58 million in losses. Long positions bore the brunt of the impact, accounting for $888.83 million of the total, while shorts made up only $96.75 million. The most significant liquidation came from BitMEX’s XBTUSD pair, with a single $10 million long order erased.

Several macroeconomic and political factors contributed to the downturn. Renewed tensions in the U.S.–China trade war have reignited concerns over global economic stability, pushing risk assets into retreat. Simultaneously, a dramatic public confrontation between Elon Musk and former President Donald Trump injected further uncertainty. Musk accused Trump of being named in sealed Epstein court documents, escalating a bitter dispute between two powerful figures.

Despite the drop in price, Bitcoin trading activity surged. Daily volume jumped by 36.24% to reach $60.39 billion, signaling intense trader reaction to the volatility. Bitcoin’s total market capitalization now stands at $2.03 trillion, with 19.87 million coins in circulation.

As nearly $1 billion in leverage was flushed out and external pressures mount, market participants are adopting a more cautious approach. While Bitcoin still trades above the key psychological level of $100,000, the short-term sentiment remains fragile. Without a de-escalation in political tensions and recovery in tech sector confidence, Bitcoin may remain exposed to further price instability in the days ahead.

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