The Donald Trump-Elon Musk Debate Also Affected the Cryptocurrency Market! Millions of Dollar Liquidity Was Lost! Here Are the Details

The crypto market experienced a significant liquidation wave exceeding a total of $980.9 million, with over 223,300 investors' positions being liquidated in the last 24 hours.

Nearly 1 Billion Dollars in Daily Liquidations in the Crypto Market: Highly Leveraged Long Positions Shaken by Macro Concerns

According to data shared by Coinglass, these liquidations were largely caused by highly leveraged long (long) positions.

According to experts, the data disclosed only includes publicly available information, so the actual liquidation amount is likely above this figure.

Kronos Research CIO Vincent Liu evaluated this sharp decline as follows:

"The $980 million liquidation event was a perfect storm created by the combination of the Trump-Musk rivalry, macroeconomic fears related to tariffs, and an overly leveraged market. The structural fragility in the crypto markets caused automatic liquidations to quickly turn into a chain reaction. This transformed a sentiment-based pullback into a sudden market crash."

A total of $876.2 million in liquidations came from long positions, with Bitcoin being the most affected cryptocurrency. On the BTC side, liquidations worth $341.7 million occurred. Approximately 90% of this amount originated from long positions.

Ether (ETH) ranked second with a liquidation of 285.6 million dollars. Solana (SOL), XRP, and Dogecoin (DOGE) were also among the other major altcoins where a significant amount of positions were liquidated.

According to Vincent Liu, the sharp declines in BTC and ETH caused the excessive optimism in the market to work against investors:

"Investors using excessive leverage were caught off guard by the sharp corrections in Bitcoin and Ether. This situation led to bullish sentiments accelerating the market collapse even further."

The Trump-Musk Conflict and Macro Developments Were Effective

Crypto prices have seen bullish momentum in recent weeks, driving Bitcoin to reach an all-time high of $111,800. However, the correction process that came after this summit gained momentum with the debate between US President Donald Trump and Elon Musk on social media.

Following Musk's harsh criticism of Trump's tax and spending proposal, describing it as "disgusting disgrace," market jitters increased. Bitcoin briefly fell below $100,000, reaching its lowest level since early May; however, as of the time the news was published, it had recovered to around $103,333.

LVRG Research Director Nick Ruck evaluated the background of the decline as follows:

"The price of Bitcoin had been fluctuating around support levels since the peak two weeks ago. Investors were on edge due to potential corrections. The disagreement between Trump and Musk triggered widespread liquidations by raising concerns about potential reciprocal sanctions."

Investors are now turning their eyes to the US employment data and the consumer price index to be announced on June 11. Kronos CIO Liu noted that this data could be important catalysts for the next major price movement.

*****It is not investment advice.

Follow our Telegram group, Twitter account, and Youtube channel for exclusive news, analyses, and on-chain data! Also, start live price tracking immediately by downloading our Android and IOS applications!