Bitcoin’s price fell to $101,579, declining 3.5% in 24 hours and 4.5% over the past week, coinciding with nearly $1 billion in leveraged crypto positions liquidated across major exchanges. Bitcoin accounted for $243.29 million of the liquidated positions, followed closely by Ethereum at $206.96 million. Over 225,000 traders were liquidated within this period, reflecting heightened market volatility.
The price drop correlates with an unusual and intense political conflict between Elon Musk and U.S. President Donald Trump. Musk publicly criticized Trump’s $1.6 trillion Congressional spending bill, calling it "One Big Beautiful Bill" with negative fiscal impacts on Tesla. Trump retaliated by threatening to cut federal contracts with Musk’s companies, including Tesla and SpaceX, triggering a 15% drop in Tesla’s stock price. Musk subsequently called for Trump’s impeachment. This public feud is viewed as a destabilizing factor creating uncertainty in tech equities and digital asset markets, stirring widespread risk-off sentiment among investors.
Institutional interest in Bitcoin ETFs also contracted for the first time since spot products were introduced in the U.S., with institutional Bitcoin holdings dropping 23% from $27.4 billion in Q4 2024 to $21.2 billion in Q1 2025, partly due to active selling by professional money managers. BlackRock’s iShares Bitcoin Trust recorded a $430 million outflow on May 30, ending a 31-day inflow streak, and further feeding selling pressure.
Technically, Bitcoin sits just above a key psychological support level of $100,000. A decisive break below this level could trigger algorithmic selling and further liquidations, with possible testing of the $95,000–$98,000 range. The daily RSI is currently downward trending but may signal reversal in about a week. Despite the instability, some analysts see potential long-term buying opportunities if Bitcoin follows historical patterns of rising during recessions, especially as Musk warns the proposed tariffs may cause a U.S. recession in the latter half of 2025.
Additionally, interest is shifting toward altcoins such as BTC Bull Token ($BTCBULL), which links its value to Bitcoin via mechanisms like BTC airdrops and automatic supply burns. The token has attracted strong demand with a near $7.78 million presale cap and a 61% APY staking pool offering stable passive yields without lockups or fees.