Crypto Crash Alert: $980M Liquidated as Trump and Musk Ignite Market Turmoil

Crypto Crash Alert: $980M Liquidated Amid Tariff Fears and Trump-Musk Spat

Crypto Crash Alert – The cryptocurrency market witnessed over $980.9 million in liquidations involving more than 223,300 traders within the last 24 hours, according to data aggregated by Coinglass. It is important to note that actual liquidation figures might be higher, as reported numbers rely solely on publicly available data which may underestimate the true scale.

Massive Liquidations Driven by Over-Leveraged Positions and Market Sentiment

Vincent Liu, Chief Investment Officer at Kronos Research, described the liquidation event as a “perfect storm” caused by the escalating Trump-Musk feud, tariff-related macroeconomic anxieties, and a highly over-leveraged crypto market. Liu added, “The structural fragility inherent in crypto, where automated liquidations cascade rapidly, transformed a sentiment-driven dip into a swift market unwind.”

Of the total liquidations, $876.23 million stemmed from long positions. Bitcoin (BTC) alone accounted for $341.71 million in liquidations, with 90% attributed to longs. Ether (ETH) followed with $285.64 million liquidated, while Solana (SOL), XRP, and Dogecoin (DOGE) also saw significant liquidation volumes.

Sharp Price Drops Catch Traders Off-Guard

The large number of liquidated long positions suggests that many over-leveraged traders were caught off-guard by sudden declines in BTC and ETH prices. According to Liu, “Excessive bullish sentiment amplified the market correction, intensifying losses for investors.”

Bitcoin recently retested its all-time high near $111,800 before retreating. Analysts noted that the cryptocurrency stabilized around $105,000 but took a steep dive late Thursday following a public spat between U.S. President Donald Trump and tech mogul Elon Musk over Trump’s tax and spending bill. Bitcoin briefly dropped close to $100,000, its lowest since early May, before recovering to trade at $103,333 at the time of writing.

Nick Ruck, director at LVRG Research, explained, “Bitcoin was already near support levels, with investors wary of triggers that could force liquidations. The Trump-Musk conflict sparked concerns about potential retaliations, fueling widespread sell-offs.”

Upcoming Economic Data Could Drive Next Moves

Investors now eagerly await Friday’s U.S. employment report and the Consumer Price Index (CPI) release on June 11, which Kronos’ Liu predicts will act as a “major catalyst” for future price direction.

Key factors to monitor include US-China macro developments, potential effects of Trump’s “big beautiful” tariff bill, the strength of the U.S. dollar (USD), and institutional capital flows. Liu concluded, “The market remains fragile post-liquidations, with over-leveraged positions exacerbating volatility.”

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.