How the Musk-Trump Feud Melted Nearly $1 Billion From Crypto Markets In 24 Hours—Why No Trader Is Safe in 2025
Elon Musk and Donald Trump’s explosive clash triggers $977M in crypto liquidations as BTC, ETH plummet to shocking new lows.
- $977M liquidated from crypto markets in 24 hours
- 219,879 traders wiped out in a single day
- $101,783—BTC’s new weekly low after recent ATH
- Long traders lost $869M in the rapid downturn
Bitcoin and Ethereum investors are reeling after a whirlwind 24 hours rocked by the highly publicized feud between Elon Musk and President Donald Trump. Their social media battle didn’t just draw headlines—it unleashed panic across global markets and triggered liquidations that wiped out nearly $1 billion in leveraged crypto positions.
As memes and fiery threats flew online, markets bled red. Tesla’s stock cratered, but the real damage landed in digital assets. Leverage traders, especially those expecting another bull run, faced devastating losses as Bitcoin plunged below $102,000 and Ethereum tumbled under $2,400.
Q: What Drove This Historic Crypto Liquidation?
The spark? A digital showdown between the world’s richest tech mogul and the most powerful politician in America. Both Musk and Trump escalated their feud on major social platforms, threatening exposure and federal subsidy cuts. The fallout sent shockwaves through investor confidence.
As panic set in, long traders—betting on further price gains—were blindsided. According to Coinglass, out of the nearly $1 billion liquidated, over $869 million came from bullish traders betting on the rally’s continuation. Short traders weren’t entirely spared, with $110 million lost as volatility cut both ways.
How Did Bitcoin and Ethereum React?
Bitcoin, which had recently set a fresh all-time high above $111,000, nosedived to $101,783 in mere hours. Ethereum, grappling with its own bearish momentum, lost a crucial support level, temporarily dipping below $2,400 for the first time in months.
This bloodbath is a stark reminder of how fast sentiment can flip. Just weeks earlier, the crypto market was celebrating as Bitcoin shattered record after record, and altcoins recaptured much of their lost value from a sluggish winter.
Q: Is the Crypto Market Doomed in 2025?
Far from it—but volatility rules. Experts from CNBC and CoinDesk highlight that political risk is now embedded in digital assets. Ties between crypto and global policy are tighter than ever, especially as 2025’s presidential year draws global attention.
While May’s rally provided hope, recent events prove no market is immune to headline risks—even from social media spats. Traders and investors now face the hard reality that one tweet or feud can liquidate fortunes instantly.
How to Protect Yourself from Crypto Liquidation Shocks
– Limit leverage use—keep it conservative, especially in uncertain times.
– Use stop losses and trailing stops for every trade.
– Diversify—don’t put all funds in one coin or market.
– Monitor key figures and political events closely.
The return of market optimism is still possible once the Musk-Trump standoff cools, but caution is the rule for 2025. Stay vigilant—volatility is here to stay.
Don’t Get Liquidated! Stay Sharp With This Quick Checklist:
- Review your open leverage positions immediately
- Set or adjust stop-loss orders on all trades
- Follow trusted news sources like Reuters and Bloomberg
- Be ready to act if political tensions escalate again
Crypto fortunes rise and fall in a tweet. Will you be ready when the next headline hits?
