Crypto Liquidations Almost Top $1B Following a Messy Breakup Between Elon Musk and U.S. President Donald Trump
The cryptocurrency market has been experiencing significant volatility, with over $831 million in forced liquidations recorded in the past 24 hours. Long traders, in particular, were caught off guard, resulting in more than $765 million being wiped out.
Bitcoin (BTC) and Ethereum (ETH) leveraged markets were hit the hardest by the recent surge in crypto volatility. The fear and greed index for Bitcoin dropped from 62 percent to 57 percent, indicating a shift towards a bearish market sentiment.
The market turmoil can be attributed to the fallout between United States President Donald Trump and tech mogul Elon Musk. The former friends turned foes clashed over the Congressional spending bill, which Trump believes is crucial for cutting expenses and implementing tax cuts. Musk, on the other hand, has been pushing for Trump’s resignation and impeachment, citing concerns over potential economic downturns due to slow negotiations on tariffs.
The heated exchange between Trump and Musk has sparked fears of a looming recession, with Musk predicting a downturn in the second half of 2025 if the current tariff negotiations do not progress smoothly. In such a scenario, traditional safe-haven assets like Gold are expected to outperform the stock market. Given Bitcoin’s reputation as digital gold, the cryptocurrency market could see a bullish recovery in the latter half of the year.
Overall, the crypto market is facing uncertainty and instability in the face of geopolitical tensions and economic uncertainties. Traders need to stay vigilant and adapt to the rapidly changing landscape to navigate the turbulent waters ahead.
