Bitcoin price dropped to $101,579 today. It declined by 3.5% in 24 hours and 4.5% over the past week. Nearly $1 billion in leveraged cryptocurrency positions were liquidated on major exchanges.
This decline coincides with the escalating political conflict between Elon Musk and US President Donald Trump. This is an abnormal but significant factor that surprises the market and triggers investor exodus.
$1 Billion Liquidation Due to Political Volatility
According to liquidation data, a total of $964.84 million in positions were liquidated in the past 24 hours. Among these, $877.17 million were long positions.
Bitcoin accounted for $243.29 million, followed by Ethereum at $206.96 million. During the same period, over 225,000 traders were liquidated.
The sudden unwind of leverage highlights growing anxiety among market participants. Many are reacting to broader macroeconomic risks and unexpected spillover effects of US domestic politics on the digital asset market.
Trump-Musk Conflict Triggers Volatility
The Bitcoin price drop coincides with the public conflict between Elon Musk and President Trump. The conflict escalated this week after Musk publicly criticized Trump's $1.6 trillion "One Big Beautiful Bill Act".
Musk also accused the bill of increasing national deficit and cutting crucial electric vehicle subsidies that directly impact Tesla.
In response, Trump threatened to terminate all federal contracts with Musk's companies, including Tesla, SpaceX, and Starlink. This resulted in Tesla's stock dropping by 15%.
Musk retaliated by demanding Trump's impeachment and hinting at Trump's involvement with undisclosed Epstein files.
Meanwhile, multiple sources report that White House senior advisors held an emergency meeting today to assess potential economic repercussions.
BREAKING: President Trump's former White House Chief Strategist Steve Bannon calls for Elon Musk to be deported, per NY Times. https://t.co/Q82Pbhzppt
— The Kobeissi Letter (@KobeissiLetter) June 5, 2025
This high-level conflict is considered a potential destabilizing factor for both tech stocks and digital assets. Cryptocurrency traders appear to be rushing to reduce their exposure.
Overall, despite broader risk appetite from expectations of late 2025 rate cuts and increased institutional participation in cryptocurrencies, this political drama is clouding market sentiment.
Can Bitcoin Maintain the $100,000 Level?
Technically, Bitcoin is currently positioned just above the critical psychological support level of $100,000.
A decisive drop below this level could trigger new algorithmic sell-offs and liquidation events, especially with long positions dominating the books.
If long liquidations continue at this pace, Bitcoin might test the $95,000 to $98,000 range, where it could find meaningful support.
#Bitcoin | The daily RSI structure is an important indicator to follow.
— Kevin Svenson (@KevinSvenson_) June 6, 2025
Right now, the daily RSI is still pointing downward, but we may be a week away from a potential reversal signal.#BTC $BTC 🔗https://t.co/ziTc5rRfXa pic.twitter.com/AoheHY7aQ9
The Musk-Trump conflict reflects how the cryptocurrency market is increasingly intertwined with global politics and traditional finance.
Traders are now learning that Bitcoin's volatility is not just a function of on-chain indicators or macroeconomic indicators. Conflicts and legislative threats between billionaires can also trigger volatility.
Bitcoin's short-term outlook remains unstable until tensions ease or the market finds a new catalyst.
