Bitcoin (BTC) Whales Cash Out as Trump and Elon Musk Fuel Market Volatility

Key Takeaways

• Bitcoin briefly dipped to $101,429 amid a public feud between Elon Musk and Donald Trump.
• On-chain data reveals that long-term holders are increasingly taking profits amid the issue.
• Technically, BTC has broken below the ascending channel’s lower trendline. What next?

Bitcoin (BTC) briefly plunged to $101,429 on Thursday, June 5, triggering over $300 million in long position liquidations.

The sudden downturn came in the wake of a high-profile spat between Elon Musk, the world’s richest man, and former U.S. President Donald Trump—a clash that rippled across financial markets and likely spooked crypto investors.

Although Bitcoin’s price has staged a modest rebound, on-chain data suggests that the Musk–Trump feud wasn’t the sole trigger.

In this analysis, CCN uncovers the reasons, revealing that even Bitcoin’s strongest holders have begun to loosen their grip.

Charts Tell a Sober Bitcoin Story

A few days ago, the Bitcoin technical setup showed that the cryptocurrency looked ready to hit a new high. However, it has faced a setback after the coin almost dropped below the $100,000 support.

The development occurred as Trump and Musk traded accusations in a public clash, marking a dramatic turn in a once-amicable relationship that now appears to have soured.

However, recent insights from Glassnode highlight that Bitcoin is under significant profit-taking pressure from long-term holders. The on-chain analytics platform reports that holders who accumulated BTC between the last six to twelve months have collectively realized daily profits exceeding $1 billion since the start of the month.

“At the most recent peak, the 30-day moving average of realized profit by LTHs surged to ~$1B per day, while short-term holders (STHs) realized just $0.32B per day. This marks a more than 3X difference, reinforcing that this wave of profit-taking is being led by older, higher-conviction investors,” It revealed .

This selling pressure has weighed heavily on Bitcoin’s price. If it continues, the coin could face a deeper breakdown.

Holders Worsen the Cracks

In most cases, long-term holders rarely take profits during bull markets — they typically sell only when the market has reached its peak. So, this current condition suggests that BTC might be nearing a prolonged consolidation phase.

This was also validated by the holding time of transacted coins, which measures how long a coin has been held before being transacted or sold.

Typically, an increase in holding time indicates that investors are HODLing, which tends to support price stability. A decline, on the other hand, suggests growing selling pressure.

Data from IntoTheBlock reveals that Bitcoin’s average holding time has dropped by 67.74% over the past 30 days, indicating that many holders are offloading their coins rather than accumulating.

If this pattern continues, it could put downward pressure on Bitcoin’s price.

BTC Price Analysis: Another Decline Ahead

On the daily chart, Bitcoin’s price was previously trading in an ascending channel and eyeing a new all-time high. Lately, however, it has dropped below the lower trendline of the bullish setup.

As a result, BTC risks dropping below support at $98,604. In addition, the Awesome Oscillator (AO) has flashed red histogram bars, indicating bearish momentum around the cryptocurrency.

If this remains the same, Bitcoin’s price could drop to the support level of $94,203. It could even worsen if Musk and the current U.S. pro-crypto president continue their feud publicly.

However, the trend could change if demand for BTC increases and profit-taking stalls. In that scenario, Bitcoin price might bounce toward $112,072.