$308 million in bitcoin evaporates overnight amid Trump-Musk and tariffs storm

(Dan Tri) - More than $300 million in bitcoin positions were wiped out on a chaotic day, as the war of words between Mr. Trump, billionaire Musk and concerns about tariffs caused the cryptocurrency market to plummet.

The cryptocurrency market just had one of its worst trading sessions in weeks.

Bitcoin has plummeted from a peak of $105,915 per BTC to a psychologically important $100,500 in just a few hours. The coin is struggling to hold its price around $102,000, recording a loss of nearly 3% on the day and wiping out all of last week's gains.

That sudden drop triggered a massive wave of liquidations. According to data from the CoinGlass platform, about $308 million in bitcoin longs—those betting on the price going up—were wiped out. The shockwaves rippled across the market, with the total value of liquidations reaching $982.55 million.

Major altcoins were not spared either. Ether (ETH) lost 7.25%, Solana (SOL) fell 5.20%, and XRP was also in the red. Clearly, a powerful force is sinking investor confidence.

Trump-Musk “war” sparks collapse

Amid the fragile market, a high-profile political confrontation has added fuel to the fire. Tensions between President Donald Trump and tech billionaire Elon Musk have escalated to a fever pitch, sending a wave of uncertainty through financial markets.

It all started when Elon Musk posted on social network X, warning that Mr. Trump's global tax plan "will send the US economy into recession in the second half of this year."

Not one to be trifled with, Mr. Trump immediately responded on Truth Social, declaring that he would end all government subsidies and lucrative contracts for Musk's companies, claiming that this would help the United States "save billions of dollars."

The drama climaxed when Musk threatened that SpaceX would "immediately cease operations of the Dragon spacecraft" - the only US-made vehicle capable of taking astronauts into space, although he later retracted this threat.

The public war of words between two of the world’s most influential figures sends an alarming message: policy unpredictability and political instability are at an all-time high. For an asset class as sensitive to macro risks as bitcoin, this is a poison pill.

According to data from the CoinGlass platform, $982.55 million worth of bitcoin and cryptocurrencies were liquidated as Trump-Musk tensions reached alarming levels (Illustration: dailyhodl.com).

The "Tariff Ultimatum Loop" and the Shadow of Interest Rates

The Trump-Musk fight is just the tip of the iceberg of a larger issue: the specter of tariffs, according to Pav Hundal, chief analyst at trading platform Swyftx. He warned that the biggest risk for bulls right now is that the market is stuck in an “endless loop of tariff ultimatums” from Trump.

History has shown that trade wars have always dampened trading activity in both the stock and cryptocurrency markets. But this time the impact is deeper. The uncertainty around tariffs is forcing the Federal Reserve to tread carefully. Policymakers may hold off on easing monetary policy (cutting interest rates) until they have “clear data” on the impact of tariffs.

“The 2% inflation target was achievable six months ago, but now it is under serious threat from tax policy,” Hundal said. The Fed is “walking a tightrope,” balancing the risk of inflation with rising unemployment. A delay in cutting rates would strengthen the dollar and reduce the appeal of risk assets like Bitcoin.

Even without political factors, the market has shown signs of cracks from within. Blockchain analytics firm Glassnode points out that after bitcoin hit a new all-time high of $111,970 on May 22, long-term holders began a slow but steady profit-taking campaign.

“As long-term investors continue to apply selling pressure, the likelihood of a short-term correction is increasing, especially as the market lacks a strong catalyst to push prices decisively higher,” Glassnode warned in its latest report. This wave of selling, combined with panic from macro news, has created a huge drag on bitcoin prices.

Fork in the Road: The $100,000 Abyss or the $120,000 Dream?

Bitcoin is at a fateful crossroads.

In the worst case scenario, if political tensions persist and tariff policy remains unclear, the Fed will continue to delay rate cuts. Negative market sentiment could cause bitcoin to lose its key support level of $100,000. Hundal warned that if the situation plays out as the pessimists predict, bitcoin could plummet below $100,000.

The optimistic scenario is that if the White House ends its tariff threats, creating stability, the market can breathe a sigh of relief. Analysts from Bitfinex and Swyftx believe that bitcoin could break out to $115,000-$120,000 in June or July, especially if the US jobs report is weaker than expected, giving the Fed more reason to cut interest rates soon.

At this point, the fate of bitcoin is no longer in the hands of the cryptocurrency community alone. It is heavily influenced by political calculations in Washington and macroeconomic decisions. For investors, this is a period that requires maximum caution, because every tweet from Trump or Musk can cause billions of dollars to "evaporate" in the blink of an eye.

Source: https://dantri.com.vn/kinh-doanh/308-trieu-usd-bitcoin-boc-hoi-trong-dem-giua-bao-trump-musk-va-thue-quan-20250606135025813.htm