The cryptocurrency market is down on June 6 due to the intensifying Trump-Musk feud, significant long liquidations, and a weak technical structure.
The total crypto market cap fell 2.30% to $3.21 trillion on June 6, fueled by the Trump-Musk feud.
Over $980 million in crypto futures liquidated, with $874 million in longs reinforcing the intensity of the selling pressure.
Total crypto market cap risks falling toward $2.9 trillion after breaking below a descending parallel channel.
The combined valuation of all cryptocurrencies has fallen by around 2.30% in the past 24 hours to reach $3.21 trillion on June 6.
Trump-Musk feud fuels crypto sell-off
Crypto prices began falling during late New York trading hours on June 5 following a public spat between US President Donald Trump and billionaire Elon Musk.
The two billionaires, united during the 2024 US Presidential election, exchanged pretty sharp remarks online, triggering a risk-off mood among investors.
Musk took aim at Trump’s recent spending bill, dubbed the Big Beautiful Bill and backed calls for his impeachment.
Trump responded with strong comments about the economy, saying that terminating Musk’s government subsidies and contracts would save “billions and billions of dollars” for the US government.
In response, Bitcoin
BTC
$103,956
dropped by as much as 5.2% to as low as $100,400 on Bistamp before recovering to the current levels above $103,200. The decline in BTC triggered panic selling among crypto investors, with cryptocurrency prices dropping.
Ether
ETH
$2,483
dipped as low as $2,384 on June 6, marking 4% losses over the last 24 hours. XRP
XRP
$2.16
and Solana
SOL
$151.51
also witnessed significant losses, down 4% and 5.2%, respectively.
Dogecoin (DOGE), a memecoin usually associated with Elon Musk, bore the brunt of the sell-off, losing 9% of its value in the past 24 hours.
Crypto market suffers $980M in liquidations
The cryptocurrency market’s sell-off today coincides with a wave of liquidations in the futures market, totaling $979.9 million in the last 24 hours.
Notably, the futures market witnessed long liquidations worth $874 million, the largest single-day liquidation since Feb. 25. Short traders saw significantly lower liquidations at $105 million.
Bitcoin and Ether led the losses with $342.9 million and $285 million in liquidations, respectively. Solana followed with $50.3 million, while Dogecoin and XRP saw $27 million and $23 million liquidated, respectively.
This scale of liquidation exacerbates price drops and instills fear among other market participants, leading to further selling pressure.