Bitcoin Drops to $100k Amid Donald Trump and Elon Musk Feud

Key Insights

• Trump and Elon Musk massively impact Bitcoin

• Bitcoin traders turn bearish in record time

Bitcoin Market shake amid Trump and Elon Musk feud

In a major surprise, the crypto market was caught in the middle of Trump and Musk fallout.

What started as a verbal clash on the social platform X quickly spiraled into a massive wave of fear-driven selling across the crypto market.

Until recently, both Trump and Musk were seen as crypto-friendly voices, especially during the U.S. presidential race. Their alliance created a sense of political support and optimism in the market. But the sudden rift has now injected a new level of uncertainty and traders had immediate reaction.

Record-Breaking Bearish Flip on Binance

Bitcoin Net Taker Volume on Binance: This graph illustrates the hourly net taker volume with a 7-hour moving average (7HMA), highlighting periods of positive (green) and negative (red) volumes. The chart shows fluctuations in buy and sell pressures correlating with the Bitcoin price (USD).

The most immediate response came from Binance, the largest crypto exchange by volume. According to Cryptoquant, Within just 8 hours, the net taker volume on Binance flipped from +$20 million to -$135 million the biggest intraday sentiment shift seen in all of 2025.

Also Read: Bitcoin sellers offload $1.5 billion worth of BTC

This means that more traders rushed to open short positions, betting on price drops, rather than going long. It’s a clear sign that many are bracing for further downside or at least hedging against volatility.

This wave of sudden pessimism created downward pressure across the board, suggesting a “risk-off” reaction by the market.

Essentially, traders were quickly stepping away from risk as the Trump–Musk drama unfolded in real-time.

Graph showing the Bitcoin Coinbase Premium Index with a significant decline on June 4th and 5th. The index drops from above 0.08 to around $100.5K, indicating a sharp decrease in Bitcoin's price on Coinbase compared to other exchanges.

It wasn’t just retail investors reacting. Data from the Coinbase Prime Index, which tracks large U.S. institutional flows, turned negative shortly after the feud began. That’s a strong signal that whales and institutions also lost confidence, even though Bitcoin had been showing signs of healthy consolidation before this event. This bearish flip on the index shows that the shock had a real economic impact on market positioning and psychology.

$324 Million in Longs Wiped Out

Bitcoin long liquidations reach $324 million amid market fluctuations, with the realized price for short-term holders at $97.5.

The Bitcoin futures market was hammered, with a staggering $324 million worth of long positions liquidated in a single day. That means leveraged traders betting on a price increase were forcefully closed out of their trades.

This kind of mass liquidation often adds more downward pressure on Bitcoin prices, as sell-offs amplify the drop, causing even more panic.

What's Next for Bitcoin? Reversal or More Blood?

Bitcoin exchange netflow chart displaying the fluctuations in netflow and corresponding price changes over time. Large outflows in red and inflows in green highlight the market's dynamic movements.

Despite the intense sell-off, the market isn’t necessarily turning bearish. In fact, activities on exchanges have flipped bullish again. Currently, the exchange netflow sits within negative territory after flipping positive the previous day after the Trump and Musk feud.

The flip here suggests that buyers have returned to the market and now are currently surpassing sellers. More so, Bitcoin has reversed and touched $105k once again. Thus, most shorts have been liquated as BTC started the uptrend once again. Therefore, the issue between Trump had a short-lived impact on the Market and Bitcoin now eyes a move towards $107k.