Liquidations in the cryptocurrency market hit a record $ 1 billion per day

Over the past 24 hours, traders who bet on Bitcoin’s growth BTC $105,233.97 Bitcoin 1.24% Market capitalization $2.09 trillion VOL. 24 hours $1.3 billion have suffered significant losses as the cryptocurrency has dropped by almost 3% and approached the $ 100,000 mark. Experts believe that the main reason for the fall is the escalating conflict between Donald Trump and Elon Musk.

Bitcoin first rose to $ 105,915, but then quickly fell to $ 100,500. Currently, its price is hovering around $ 102,180. During this period, more than $ 308 million worth of positions were liquidated, and the total volume of liquidations in the cryptocurrency market reached almost $ 1 billion, mostly at the expense of longs.

The conflict escalated after Musk said that Trump’s tariffs would lead to a recession in the second half of this year. Earlier, Trump announced the possibility of canceling government contracts and subsidies for Musk’s companies to save «billions of dollars.» In response, Musk threatened to start dismantling SpaceX’s Dragon spacecraft, but later withdrew his statement.

Amid this news, analysts believe that a slowdown in US monetary policy could delay the recovery of the cryptocurrency market. Additional pressure is created by sales by long-term Bitcoin holders who are taking profits after recently reaching historic highs of $ 111,970 in May.

Other cryptocurrencies are also under threat. Ethereum ETH $2,488.55 Bridged Ether (StarkGate) 0.62% Market capitalization $0.15 billion VOL. 24 hours $0.97 billion lost 7.25% of its value, XRP XRP $2.19 XRP 1.48% Market capitalization $128.55 billion VOL. 24 hours $0.15 billion - 4.35%, and Solana SOL $151.68 Binance-Peg SOL 1.25% Market capitalization $0.17 billion VOL. 24 hours $0.28 billion - 5.20%. This is evidence of a broader market downturn caused by political instability and the reluctance of major players to take risks.