Crypto Markets Rattle as Macroeconomic Concerns and Long-Term Holder Sell-Offs Mount

Bitcoin prices fell sharply over the past 24 hours as tensions between U.S. President Donald Trump and Tesla CEO Elon Musk escalated, contributing to heightened macroeconomic uncertainty. The price dip led to more than $308 million in long positions liquidated, with long-term Bitcoin holders also continuing to lock in profits following recent all-time highs.

The sell-off adds to growing concerns that political instability, paired with delayed monetary easing, could further pressure the crypto market in the weeks ahead.

Bitcoin Slides Toward $100K Amid Investor Uncertainty

According to CoinMarketCap, Bitcoin (BTC) reached a 24-hour high of $105,915 before tumbling to a low of $100,500. As of publication, the asset has recovered slightly to $102,180, holding above the psychologically important $100,000 threshold — but still nearly 3% down from its recent peak.

The steep decline triggered an estimated $308 million in long liquidations across major derivatives exchanges, according to CoinGlass data. Over $891 million in total long liquidations were reported across the crypto market, with the broader market suffering $982.5 million in total liquidations.

Trump-Musk Clash Fuels Market Volatility

The market turmoil coincided with the latest round in an ongoing feud between President Trump and Elon Musk, which intensified on June 5. Musk posted on his X platform that Trump’s proposed sweeping global tariffs would “cause a recession in the second half of this year.”

Trump responded on Truth Social, vowing to terminate Musk’s government subsidies and federal contracts, claiming it would save the U.S. government “billions and billions of dollars.” In retaliation, Musk posted that SpaceX would begin decommissioning its Dragon spacecraft, though he walked back the comment hours later.

The Dragon spacecraft remains the only U.S.-based system capable of sending astronauts to space, making Musk’s statement particularly impactful — even if retracted.

The feud has rattled investor confidence, raising concerns about the stability of federal support for key tech and aerospace projects, and by extension, its ripple effect on the wider financial markets, including crypto.

Analysts Warn of Delayed Policy Easing and Growth Risks

The spat between two of the most influential figures in politics and business comes amid growing fears that U.S. policymakers may delay interest rate cuts, particularly if Trump’s tariffs disrupt global trade and cloud economic data.

Pav Hundal, lead analyst at Swyftx, previously told Cointelegraph that any delay in monetary easing due to uncertainty around tariffs or macroeconomic volatility could result in a growth slowdown, pressuring risk assets like crypto.

“There is a real risk that policymakers will wait for hard data before adjusting rates,” said Hundal, noting that continued political drama could act as a headwind for investor sentiment.

Long-Term Holders Add to Sell Pressure

Even before the political dust-up, analysts had been warning of growing sell pressure from long-term Bitcoin holders. According to Glassnode, addresses holding BTC for 155 days or more have been steadily reducing their exposure since Bitcoin hit its all-time high of $111,970 on May 22.

In its June 5 market note, Glassnode stated:

“With long-term holders gradually applying sell pressure, the probability of a short-term correction continues to build, particularly in the absence of a strong upside catalyst to push Bitcoin decisively above [$111,800].”

This wave of profit-taking is typical after record highs but has been compounded by the broader macro and political environment, as well as a lack of clear bullish catalysts.

Altcoins Join the Downtrend

The bearish sentiment extended beyond Bitcoin, with most major cryptocurrencies recording significant declines:

• Ether (ETH) dropped 7.25%, falling to $2,458

• XRP declined 4.35%, trading at $2.13

• Solana (SOL) slid 5.20%, down to $147.15

The widespread losses reinforce the market-wide risk-off sentiment, as traders scramble to exit leveraged positions amid growing uncertainty.

Market Outlook Remains Cautious

Bitcoin’s ability to hold above the $100,000 mark — where it has now remained for nearly four consecutive weeks — is being closely monitored as a sign of market resilience. However, sentiment has clearly turned more cautious, especially as political tensions, central bank uncertainty, and long-term holder selling converge.

Crypto markets may remain volatile in the near term as investors wait for macroeconomic clarity, inflation data, and a potential return to central bank dovishness — any of which could serve as the next bullish or bearish catalyst.

Conclusion

The latest decline in Bitcoin and broader crypto markets underscores the fragility of investor sentiment amid ongoing macroeconomic and political uncertainty. The escalating Trump–Musk feud, combined with profit-taking by long-term holders and fears of delayed policy easing, has led to over $300 million in BTC long liquidations in just 24 hours.

While Bitcoin remains above the key $100,000 level, its path forward may depend on whether external pressures subside — and whether a strong upside narrative emerges to replace what is now a deeply cautious market mood.