Cryptocurrency Markets Plummet Following Trump-Musk Friendship's Demise into Discord
Crypto market cap dives $170 billion to $3.26 trillion on June 5, a drop not seen since May 8, leaving traders on edge as it hovers near support levels. A spat between President Donald Trump and tech mogul Elon Musk might've sparked this slide, with Musk accusing Trump's policies of causing an imminent recession on June 5[1]. As the war of words raged on social media, Musk announced the decommissioning of SpaceX's Dragon spacecraft in response to the President's statement about canceling government contracts[2].
The rift between the two titans, both notorious for their brash personalities, continued, with Musk lambasting Trump's One Big Beautiful Bill and even hinting at the existence of incriminating information about the President in the Epstein files[2]. Despite the heated exchanges, a truce seemed to be on the horizon as Musk admitted the need for reconciliation late on June 5.
More than a billion dollars in crypto liquidations occurred in the last day, affecting close to 228,000 traders, with a major chunk in long BTC positions[3]. Analysts had predicted this cleansing of leverage positions, as open interest on Bitcoin futures markets hit record highs recently[3].
Bitcoin plummeted almost $5,000 in a few hours, reaching a 4-week low just below $101,000 on June 5, but it found support and partially recovered to $102,800 during Asian trading hours on the following day[3]. Analysis suggests that a swift bounce from this level is unlikely, and further consolidation may follow unless the sell-off picks up pace. On the brighter side, BTC and Ethereum (ETH) continue to gain support, with a resilient ETF market, increased institutional inflows, and easing US regulatory concerns fueling a generally bullish sentiment[1][2][3].
[1] CoinDesk
[2] CNBC
[3] Bloomberg
Updated News: As of June 10–11, 2025, the global crypto market cap hovers between $3.44 trillion and $3.54 trillion, reflecting a slight growth over recent days[4][3]. Bitcoin continues its bullish trend, with open interest rising since March 2025 and prices breaking through key resistance levels to trade above $109,000. Ethereum also shows strength, with significant inflows to ETFs and a seven-week streak of new investments[1][2][3]. Market sentiment remains positive, with institutions continuing to pour money into crypto, a resilient ETF market, and easing concerns about US regulations. However, both institutional and retail investors are increasing short positions in Bitcoin, hinting at a cautious approach for the near term[2].
Sources:[1] CoinDesk
[2] CNBC
[3] Bloomberg
[4] MarketWatch
- The ongoing spat between tech mogul Elon Musk and President Donald Trump has been rumored to be a potential factor in the recent slide of the crypto market, as Bitcoin and other cryptocurrencies experienced a significant drop on June 5.
- The rift between Musk and Trump, both known for their bold personalities, has been marked by escalating criticism and accusations, with Musk questioning Trump's economic policies and even suggesting the existence of incriminating information in the Epstein files.
- The cryptocurrency market has seen a surge in trading activity in the past few days, with more than a billion dollars in crypto liquidations and close to 228,000 traders affected, largely in long BTC positions. This surge in trading activity can be attributed to the heated rhetoric between Musk and Trump, as well as the increasing open interest on Bitcoin futures markets.
