The global crypto market took a sharp hit today, dropping 2.30% to a total market cap of $3.21 trillion, as rising political tensions and nearly $1 billion in crypto liquidations sent shockwaves through investor sentiment.
Trump–Musk Clash Triggers Panic Across Markets
What started the chaos? A high-profile feud between two of crypto’s biggest public supporters—former President Donald Trump and Tesla CEO Elon Musk.
The dispute escalated after Musk publicly criticized Trump’s latest federal spending plan, calling it irresponsible and backing calls for impeachment. Trump fired back, threatening to cut off Musk’s government contracts, stating it would “save billions.”
This public clash rattled both Wall Street and the crypto world, fueling a “risk-off” environment where investors pull back from volatile assets like cryptocurrencies.
Major Coins Take a Hit
As panic set in, Bitcoin (BTC) dropped as much as 5.2%, falling to $100,400 before slightly recovering to around $103,600. Ethereum (ETH) slid to $2,384, later stabilizing near $2,478.
Other major altcoins followed the trend:
- Solana (SOL): down 5.2% to $148
- XRP: down 4% to $2.14
- Dogecoin (DOGE): plunged 9%, largely due to Musk-related FUD
$980 Million in Liquidations Deepens the Slide
On top of the political drama, the market was rocked by a massive $980 million liquidation event, the largest single-day wipeout since February 2025.
A staggering $874 million in long positions were liquidated, meaning bullish traders betting on prices going up were caught completely off guard.
- Bitcoin longs: $342.9M
- Ethereum longs: $285M
- Solana: $50.3M
- Dogecoin: $27M
- XRP: $23M
This liquidation spiral triggered more selling and intensified market volatility.
Technical Breakdown: Could the Market Drop to $2.9 Trillion?
From a technical point of view, the total crypto market cap has broken below a key support level at $3.25 trillion and is now testing $3.12 trillion — an area where both the 50-day and 200-day moving averages meet.
If this level doesn’t hold, analysts warn the market could drop to around $2.9 trillion, a level last seen during the February correction when crypto markets fell over 25%.
Meanwhile, the Relative Strength Index (RSI) has dropped to 45, signaling growing bearish momentum after peaking at 79 just last month.
Analyst Insight: Bitcoin Could Test $97,500
CryptoQuant analyst Axel Adler Jr. believes Bitcoin’s next support sits near $97,500, based on the Short-Term Holder Realized Price metric.
“If the political tensions persist and sentiment stays negative, BTC could be heading to that level soon,” Adler told Cointelegraph.
Key Takeaways:
- The crypto market fell 2.3%, led by Bitcoin and Ethereum losses.
- Trump and Musk’s political clash spooked investors and triggered sell-offs.
- $980M in liquidations intensified the decline, with long traders hit hardest.
- Technical indicators now point to possible deeper corrections if key levels fail.
- Bitcoin support is now eyed at $97,500.
