Elon Musk and Donald Trump provoked a sharp drop in the cryptocurrency market

The cryptocurrency market suffered a sharp drop worth $ 124 billion, causing a loss of 3.77% of its capitalization and a decrease to $ 3.18 trillion. Bitcoin BTC $104,563.65 Bitcoin -0.34% Market capitalization $2.08 trillion VOL. 24 hours $0.75 billion holds 63.7% of the market, while Ethereum ETH $2,508.47 Bridged Ether (StarkGate) -0.33% Market capitalization $0.15 billion VOL. 24 hours $0.59 billion - 9.2%. The largest losses were recorded in Dogecoin DOGE $0.17 Binance-Peg Dogecoin -1.69% Market capitalization $0.43 billion VOL. 24 hours $72.37 million , which fell by 9.14%, while Ethereum lost 7.18% and the market leader — 2.78%.

The market’s decline is due to a quarrel between Donald Trump and Elon Musk. Trump threatened to cancel government contracts and subsidies for Musk’s companies, including Tesla and SpaceX. This led to a 14.3% drop in Tesla shares on Thursday, and political tensions spread to digital assets.

In addition, the crypto market experienced massive liquidations of positions: over 226 thousand traders liquidated their positions for a total of $ 979.88 million over the past day. This indicates that overloaded positions have left the market due to the increase in volatility.

The CMC Crypto Fear and Greed Index fell to 46, signaling a neutral mood among market participants. A week ago, it reached 61, and yesterday it was 55, demonstrating a gradual decline in optimism among investors.

Analysts from Santiment noted large Bitcoin transactions that coincided with a local peak in the rate, when BTC was trying to exceed $ 107,000. Among the largest were transfers of $ 14.11 billion, $ 9.41 billion, and $ 2.36 billion, indicating a significant polarization among the largest holders of the asset.