Investors who went long on Bitcoin saw significant losses over the past 24 hours as the cryptocurrency dipped nearly 3%, nearing a retest of the $100,000 level.
The price decline comes as the feud between US President Donald Trump and billionaire Elon Musk intensifies, and those holding Bitcoin ( BTC ) for over 155 days keep selling to lock in profits.
Bitcoin price holds above $102,000
Over the past 24 hours, Bitcoin reached $105,915 before falling to $100,500 within a matter of hours, according to CoinMarketCap. At the time of publication, Bitcoin is holding at $102,180.
Bitcoin is down 3.61% over the past seven days. Source: CoinMarketCap
The drop caught traders offside, with approximately $308 million in long positions liquidated over the same period, according to CoinGlass.
It came alongside an escalation in Musk’s public feud with Trump, with the Tesla boss taking to his X platform on June 5 to say that Trump’s plan for sweeping global tariffs “will cause a recession in the second half of this year.”
Several crypto analysts share the same opinion. Swyftx lead analyst Pav Hundal previously told Cointelegraph there is a risk that US policymakers delay monetary easing until they get “hard data” on the impact of Trump’s tariffs, which would risk a “growth slowdown.”
Trump said in a post on his Truth Social platform that terminating Musk’s government subsidies and contracts would save “billions and billions of dollars” for the US government.
Musk responded that “in light of the President’s statement about cancellation of my government contracts, SpaceX will begin decommissioning its Dragon spacecraft immediately,” a statement that he walked back hours later.
SpaceX’s Dragon spacecraft is currently the only US-made option for sending astronauts to space.
Meanwhile, an increasing number of long-term Bitcoin holders have been selling off their holdings after Bitcoin reached new all-time highs of $111,970 on May 22, according to crypto analytics firm Glassnode.
Glassnode said in a June 5 markets note that “with long-term holders gradually applying sell pressure, the probability of a short-term correction continues to build, particularly in the absence of a strong upside catalyst to push Bitcoin decisively above [$111,800].”
Meanwhile, other major cryptocurrencies also saw sharp declines over the past 24 hours. Ether ( ETH ) dropped 7.25%, XRP ( XRP ) fell 4.35% and Solana ( SOL ) slid 5.20%.
Across the broader crypto market, total liquidations reached $982.55 million over the past 24 hours, with long positions accounting for $891.63 million of that amount.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
