Bitcoin prices fell 3.5% in 24 hours and 4.5% in the past week to $101,579.
This decline coincides with the fierce political feud between Elon Musk and US President Donald Trump. This causes an unusual but material factor eruption market and investor exit.
About $1 billion has been liquidated as the market responds to political volatility
Liquidation data shows that a total of $964.84 million has been liquidated over the past 24 hours, of which $877.17 million may be a long position.
Bitcoin totalled $243.39 million, followed by Ethereum at $206.9 million. Over 225,000 traders were liquidated during the same period.
A rapid rewinding of leverage highlights the growing anxiety among market participants. Many of them respond to broader macro risks and the unexpected ripple effects of domestic US politics on digital asset markets.
Trump Mask feud causes volatility
The decline in Bitcoin prices coincides with the public fallout between President Trump, which escalated this week after Musk publicly criticised Trump’s $1.6 trillion “one big beautiful bill act.”
Musk also denounced the national deficit that directly affects Tesla and cuts critical electric vehicle subsidies.
In response, Trump threatened to cut off all federal contracts with Musk’s companies, including Tesla, SpaceX and Starlink, causing Tesla’s share price to fall 15%.
Musk then retaliated with a Trump bluff each call. He also hinted at his relationship with Trump with the unreleased Epstein Files.
Meanwhile, multiple sources confirmed that Top White House aides held an emergency meeting today to assess potential economic radioactivity.
Famous disputes are now considered as potential instability in technology stocks and digital assets. Crypto traders are clearly in a hurry to reduce exposure.
Overall, the political drama clouds emotions despite a broader risk-on environment that hopes for interest rate cuts and increased institutional participation in crypto in the second half of 2025.
Does Bitcoin hold the $100,000 line?
Technically, Bitcoin is currently just above the important psychological support level of $100,000.
A decisive breakdown below this level could trigger new rounds of algorithm sales and liquidation events. Especially in the long, excessive positions that dominate the book.
If long liquidation continues at this pace, Bitcoin can test the $95,000-98,000 range before finding meaningful support.
Musk Trump’s fallout reflects an increasing entanglement in the crypto market with global politics and legacy finance.
Traders are now learning that Bitcoin volatility is more than just a function of chain metrics and macroeconomic indicators. Billionaire feuds and legislative threats can also cause volatility.
Bitcoin’s short-term outlook remains vulnerable until tensions and markets find new catalysts.
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