Hassan Maishera
TL;DR
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BTC lost nearly 3% of its value on Thursday to drop to the $100k level, with altcoins suffering bigger losses.
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The market dip comes amidst the ongoing feud between President Donald Trump and Elon Musk.
Musk/Trump Feud Puts a Strain on the Market
The cryptocurrency market was bloody on Thursday as Bitcoin and other major cryptocurrencies recorded huge losses. BTC, the leading cryptocurrency by market cap, lost nearly 3% of its value and tested the $100,500 levels during the late hours of Thursday.
Bitcoin has slightly bounced back and now trades above $101,800. The bearish market conditions were prompted by growing tensions between President Trump and Elon Musk.
The argument was initially triggered by the potential effects of the “Big, Beautiful Bill” on U.S. national debt, with Musk criticizing the bill days after leaving his role at DOGE. However, the feud quickly escalated on Thursday, with Trump stating that Elon had gone crazy and threatened to terminate government contracts for all Musk-led companies.
The Tesla and SpaceX founder struck back, writing that President Trump was implicated in the Jeffrey Epstein file. Musk added that SpaceX would decommission its Dragon aircraft while also calling for the impeachment of Trump and replacing him with Vice President J.D. Vance.
Altcoins Record Bigger Losses
While BTC lost 2.75% of its value, altcoins recorded bigger losses in the last 24 hours. Ether, the second-largest crypto by market cap, shed 7% of its value and now trades below $2,500 per coin.
Dogecoin was the biggest loser in the top 10, down 8%. Cardano (5%), Solana (6%), XRP (5%), and BNB (4.5%) also underperformed. Tron’s TRX is the only coin in the top 10 that is currently in the green, adding 2% to its value in the last 24 hours.
JUST IN: $285,000,000 liquidated from the crypto market in the past 60 minutes.
— Watcher.Guru (@WatcherGuru) June 5, 2025
The bearish condition saw traders lose over $285 million within an hour. The total cryptocurrency market cap has also dropped to $3.17 trillion and could dip further if the market conditions fail to improve.
