Crypto Liquidations Almost Top $1B Following a Messy Breakup Between Elon Musk and U.S. President Donald Trump

The crypto market recorded more than $831 million in forced liquidations during the past 24 hours. More than $765 million rekt in the last 24 hours involved long traders, who were caught unawares. 

Crypto traders involved in the Bitcoin (BTC) and Ethereum (ETH) leveraged markets were the most affected by the notable surge in overall crypto volatility. Bitcoin’s fear and greed index dropped from 62 percent to 57 percent in the past 24 hours, signaling a bearish market shift.

Crypto Market Tumbles on Musk vs Trump’s Fallout

The crypto market largely followed the wider stock market in bearish sentiment following the explicit fallout between United States President Donald Trump and tech billionaire Elon Musk. The friends who turned foe stirred significant short-term uncertainty, especially after Musk began pushing for the resignation of the United States President Trump. Already, Musk is pushing for the impeachment of President Trump, which has gained significant popularity.

The two differed in the Congressional spending bill that signaled further deficit. 

“I don’t mind Elon turning against me, but he should have done so months ago. This is one of the Greatest Bills ever presented to Congress. It’s a Record Cut in Expenses, $1.6 Trillion, and the Biggest Tax Cut ever given. If this Bill doesn’t pass, there will be a 68% Tax Increase, and things far worse than that,” Trump noted.

What Next?

As the online verbal exchange between Trump and Musk heated up on Thursday, during the late North American trading session, the fear of a market recession significantly increased. According to Musk, the Trump tariffs, which have experienced slow negotiations in the recent past, will cause a recession in the second half of 2025.

If a U.S. recession happens in the second half of 2025, Gold price is expected to perform better than the stock market. With Bitcoin widely regarded as a digital gold, the wider crypto market is well positioned to record a possible bullish recovery during the second half of the year.