Katherine Lindström
Elon Musk and Donald Trump’s Public Feud Just Wiped Out Crypto Traders—Here’s What You Need to Know About the $1 Billion Liquidation Bloodbath
Crypto markets reel as nearly $1 billion vanishes in trader liquidations after a high-profile clash between Donald Trump and Elon Musk shakes investor confidence.
- $977 million liquidated in 24 hours
- 219,879 traders wiped out
- $869 million lost by long traders
- Bitcoin plummeted below $102,000
The crypto world just witnessed a jaw-dropping selloff, as nearly a billion dollars’ worth of leveraged positions vanished overnight. The cause? A social media blowup between two mighty titans—Elon Musk and President Donald Trump—sent shockwaves through the market, leaving seasoned traders and hopeful newcomers licking their wounds.
Bitcoin and Ethereum bore the brunt, plunging to fresh weekly lows just days after celebrating all-time highs. As influential leaders directed barbed comments and threats at each other, the fallout swept across the digital asset landscape.
Q: What triggered the massive crypto liquidations?
The headline-grabbing feud erupted after Elon Musk, the world’s richest man, and US President Donald Trump sparred publicly over policy, government subsidies, and leaked secrets. As the clash went viral, fear and uncertainty spread through global markets, causing automated liquidations to cascade on crypto exchanges.
According to CoinMarketCap, the drama sent Bitcoin tumbling under $102,000—just weeks after crossing a record $111,000. Ethereum also suffered, slipping beneath crucial support at $2,500 and briefly dipping under $2,400.
Q: Who were the biggest losers in the meltdown?
Data from Coinglass shows a staggering 219,879 leveraged traders were liquidated, hemorrhaging almost $977 million in 24 hours. Long traders—those betting big on continued gains—were slammed the hardest, forfeiting over $869 million. Bitcoin long positions alone accounted for $301 million in losses. Ethereum bulls weren’t spared, with $256 million liquidated in long bets.
Short traders also lost $110 million collectively, as massive price swings caught both sides off-guard. Many analysts point to the Musk-Trump standoff as the key catalyst, proving yet again how political drama and big personalities now heavily influence digital assets.
How-to: Manage Risk During Crypto Turmoil
- Use stop-loss orders to protect your positions from sudden crashes.
- Diversify across assets to reduce exposure to any single coin.
- Limit leverage—high leverage magnifies risks as well as rewards.
- Stay updated on market-moving news with platforms like Reuters and Bloomberg.
Q: What’s next for the crypto market in 2025?
After a turbulent start to the year, analysts expect continued volatility. As political leaders take center stage and global regulations shift, crypto will likely see further wild price swings. Investors hope for policy clarity, but markets remain on edge, proving that even the biggest coins are not immune to powerful personalities and world events.
Take Control Amid Chaos—Stay Ahead of the Trends!
- Watch global leaders for market clues
- Set risk controls for every trade
- Follow real-time data from trusted sources
- Keep learning with resources from Binance and Coinbase
With the crypto rollercoaster showing no signs of stopping, smart investors remain vigilant, adaptive, and informed. Don’t let the next headline catch you off guard—prepare your strategy now.
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