- The ongoing public feud between U.S. President Donald Trump and Elon Musk has led to over $964 million in liquidation in crypto futures.
- However, some leading assets like Bitcoin (BTC), Ethereum (ETH), and XRP are expected to bounce back to a significant height.
The past few days have been a turbulent period for the crypto market as U.S. President Donald Trump and his old friend, Elon Musk, publicly clashed over the controversial tax cut package.
As discussed earlier in our blog post, Elon Musk believes that this bill is a “disgusting abomination” and “outrageous”. According to him, this would rather “bankrupt America” by exacerbating the debt ceiling by an additional $5 trillion.
Musk’s public displeasure and criticisms were not taken lightly by Trump, who expressed his disappointment in the former head of the Department of Government Efficiency.
According to Trump, Musk is probably upset about his administration “taking the Electric Vehicle (EV) mandate.”
He also disclosed that a nominee recommended by Musk to lead NASA was rebuffed because they discovered he was a Democrat. Per his observation, Musk might be upset about this as well. But in any case, Trump highlighted that he would rather have Musk criticise him than the bill.
Well, look, you know, I’ve always liked Elon, and so I was very surprised, and you saw the words he had. He hasn’t said anything about me that’s bad. I’d rather have him criticise me than the bill, because the bill is incredible.
The OBBBA and the Crypto Market Reaction
Recently, the One Big Beautiful Bill Act (OBBBA) was narrowly passed by 215-214. However, Musk believes that this is a “Big Ugly Spending Bill.”
Meanwhile, the crypto market emerged as one of the main casualties of this war of words. According to our research, the crypto futures liquidation increased to $964 million in just 24 hours. Coinglass data explains that 90% of this liquidation was made up of long positions, while shorts accounted for 10%.
Within the period, Bitcoin (BTC) fell to its 24-hour low of $100,436 from $105k. Fascinatingly, this aligns with our recent prediction that BTC could break down to $100k if the fading momentum continues. In that report, Bitcoin was also predicted to stage a rebound to $111,980 once it breaks above the $106k.
At the time of writing, the asset had reduced its daily and weekly losses to 1.2% and 2.3%, respectively, and was trading at $103k.
Ethereum (ETH) also plunged below its $2,500 support level to reach a daily low of $2,387. At press time, the asset had marginally bounced back to $2,462, but was still down by 5% and 6% on its daily and weekly price charts, respectively.
According to our recent analysis, ETH still has the potential to stage a bullish reversal to $3000. In that report, the current breakdown to $2,400 was rightly predicted as the asset formed a bearish crossover on its price chart.
Similarly, XRP declined to a very crucial support level at $2.0. At press time, the asset had surged to $2.1 but was still down by 2.9% and 2.6% in the last 24 hours and seven days, respectively.
As highlighted in our previous news brief, XRP is expected to hit $15 in the long term. According to analysts, the current bearish trend is just temporary. As mentioned in another news update, the price of XRP could also reach $27 this year.
