Bitcoin price has dropped to 101,579 USD today, decreasing by 3.5% in the past 24 hours and 4.5% in the past week, as nearly 1 billion USD of cryptocurrency leveraged positions were liquidated on major exchanges.
This decline coincides with the increasingly tense political conflict between Elon Musk and US President Donald Trump—an unusual but significant factor causing market panic and investor withdrawal.
Nearly 1 billion USD liquidated as the market reacts to political fluctuations
According to liquidation data, a total of 964.84 million USD of positions were liquidated in the past 24 hours, of which 877.17 million USD were long positions.
Bitcoin accounted for 243.29 million USD of this total, closely followed by Ethereum with 206.96 million USD. Over 225,000 traders were liquidated during the same period.
This sudden leverage release shows increasing anxiety among market members—many of whom are reacting to broader macro risks and unexpected impacts of US domestic politics on digital asset markets.
Cryptocurrency liquidation heat map. Source: CoinglassTrump-Musk conflict causes volatility
Bitcoin's price drop coincides with the public conflict between Elon Musk and President Trump, escalating this week after Musk publicly criticized Trump's 1.6 trillion USD "One Big Beautiful Bill Act".
Moreover, Musk accused the bill of increasing national deficit and cutting critical electric vehicle subsidies that directly impact Tesla.
In response, Trump threatened to terminate all federal contracts with Musk's companies—including Tesla, SpaceX, and Starlink—causing a 15% drop in Tesla's stock price.
Musk subsequently called for Trump's impeachment. He also alluded to Trump's alleged relationship with unreleased Epstein documents.
Meanwhile, multiple sources confirmed that top White House assistants held urgent meetings today to assess potential economic impacts.
This prominent conflict is now considered a potential destabilizing factor for both tech stocks and digital assets. Cryptocurrency traders seem to be rushing to minimize risks.
Overall, despite a broader risk environment driven by expectations of interest rate cuts by late 2025 and increasing institutional involvement in cryptocurrency, this political drama is clouding market sentiment.
Will Bitcoin maintain the 100,000 USD level?
Technically, Bitcoin is currently sitting just above the important psychological support at 100,000 USD.
A decisive break below this level could trigger algorithmic sell-offs and new liquidation events. Especially with predominantly overleveraged long positions.
If long position liquidations continue at this pace, Bitcoin might test the 95,000–98,000 USD range before finding significant support.
The conflict between Musk and Trump reflects the increasing interconnection of the cryptocurrency market with global politics and traditional finance. Traders are learning that Bitcoin's volatility is not just a function of on-chain indicators or macroeconomic indicators. Billionaire conflicts and legislative threats can also cause volatility.
Until tensions ease or the market finds a new catalyst, Bitcoin's short-term prospects remain fragile.
