Bitcoin investors who bet on prices going up were hit hard in the past 24 hours. The world’s largest cryptocurrency dipped nearly 3%, coming dangerously close to retesting the $100,000 mark, just days after setting a new all-time high.
The sudden drop happened as tensions flared between former U.S. President Donald Trump and billionaire Elon Musk. Long-term holders also began cashing out to lock in profits after BTC recently soared to $111,970 on May 22.
Bitcoin briefly touched $105,915 before quickly plunging to $100,500, according to CoinMarketCap.
Source: CoinMarketCap
It’s currently holding at around $102,180. According to CoinGlass statistics, this rapid shift resulted in the removal of $308 million from long positions.
The sell-off coincided with a highly public argument between Trump and Musk. On June 5, Musk criticized Trump’s proposed global tariffs on X (formerly Twitter), warning they could cause a recession later this year. Trump, in turn, claimed that cutting Musk’s government contracts could save the U.S. billions.
Musk responded by firing back with a dramatic statement that SpaceX would start decommissioning its Dragon spacecraft—though he later backtracked.
Analysts say the political uncertainty, especially around tariffs and U.S. monetary policy, is rattling markets. Swyftx’s lead analyst, Pav Hundal, warned that if the Fed delays interest rate cuts until the full impact of tariffs is clear, economic growth could stall.
Meanwhile, data from Glassnode shows long-term Bitcoin holders—those holding for over 155 days—have started selling, applying consistent pressure on prices. Without a fresh bullish trigger, a short-term correction seems more likely.
It’s not just Bitcoin feeling the heat. Ethereum is down 7.25%, XRP dropped 4.35%, and Solana slid 5.20%. In total, the crypto market saw nearly $983 million in liquidations in the past day, $891 million of that from traders who were betting on prices to rise.
