The war of words between the two influential individuals wreaked havoc on crypto leverage traders, especially bullish traders, as the BTC price fell below $102,000 and the Ethereum price slumped below $2,500.
Crypto Market Records $977M in Liquidations
According to Coinglass data, in the past 24 hours, 219,879 traders were liquidated, for a total of $977.81 million. Long traders lost over $860 million in liquidations, while short traders collectively saw $110 million in liquidation.
Bitcoin price dropped to a new weekly low of $101,783 after posting a new all-time high of over $111,000 just a few weeks ago. On the other hand, Ethereum lost its key support of $2,500 during last night’s market turmoil and fell below $2,400 briefly.
Bitcoin leverage traders collectively lost over $345 million, with Bitcoin long traders losing $301 million and short BTC traders losing $39.98 million.
Crypto market records nearly a billion dollars in liquidation. Source: Coinglass
Ethereum leverage traders collectively lost $284.7 million, with long traders contributing $256 million and short traders losing $27.6 million.
The current market turmoil is attributed to the clash of the two most powerful men in the world, who threatened to leak private information and cut back government subsidies while feuding on a public social media platform.
Market Sentiment Turning Bearish Again
The crypto market sentiment turned bullish towards the second half of May after three months of sideways movement, but the bullish rally was short-lived as BTC and altcoins continue to post new lows.
When Donald Trump took the oath in January, many expected the BTC price to soar to new highs and the bull rally to continue.
However, right after Trump’s inauguration, the crypto market started to tank thanks to Trump’s tariff wars, while a few others blamed the memecoin launch as the top signal for the short-term market.
The crypto market cooled off for nearly three months as BTC price fell below $75,000 while ETH struggled to hold above $1,800.
With the tariff war almost over, the crypto market breathed a sigh of relief. BTC posted new highs, while altcoins recovered their losses from the past three months.
As the momentum turned bullish, the Trump feud with Musk tanked the market again, proving crypto is now inherently tied to Trump and his decisions.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
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