Trump-Musk clash triggers bitcoin drop, as $308m in longs wiped out

Investors who went long on Bitcoin suffered sharp losses over the past 24 hours as the cryptocurrency slid nearly 3%, moving dangerously close to retesting the $100,000 level.

The downturn came as tensions escalated between U.S. President Donald Trump and billionaire Elon Musk. Simultaneously, long-term Bitcoin holders—those holding the asset for more than 155 days—have begun cashing out to secure profits.

According to data from CoinMarketCap, Bitcoin briefly touched $105,915 before plummeting to $100,500.

As of this writing, it has recovered slightly and is trading at $102,180. The leading cryptocurrency has lost 3.61% over the past week.

The price slide triggered significant market repercussions. CoinGlass reports that around $308 million in long positions were liquidated in just 24 hours, catching many traders off guard.

Adding to market jitters, Elon Musk took to his X platform on June 5 to slam Trump’s proposed global tariffs, warning they could trigger a recession in the second half of 2025.

Trump fired back on Truth Social, suggesting that cutting off Musk’s government contracts and subsidies could save the U.S. “billions and billions of dollars.”

Musk responded dramatically, stating that SpaceX would start decommissioning its Dragon spacecraft “immediately” due to the threat.

He later walked back the statement, but the damage to investor sentiment was already done. Notably, the Dragon is the only American-built spacecraft currently capable of transporting astronauts to space.

Glassnode noted that an increasing number of long-term Bitcoin holders began offloading their assets after BTC hit a new all-time high of $111,970 on May 22. In a June 5 update, the analytics firm warned that “with long-term holders gradually applying sell pressure, the probability of a short-term correction continues to build, particularly in the absence of a strong upside catalyst to push Bitcoin decisively above $111,800.”

Bitcoin wasn’t alone in the downturn. Ether (ETH) tumbled 7.25% to $2,519, XRP fell 4.35% to $2.18, and Solana (SOL) slipped 5.20% to $151.64. Overall, the crypto market saw total liquidations of $982.55 million in the past 24 hours, with long positions accounting for a staggering $891.63 million.

Vanguard News