Overleveraged Longs Face Heavy Losses
The cryptocurrency market has witnessed over $1 billion in liquidations over the past 24 hours, primarily affecting overleveraged long positions in Bitcoin (BTC) and Ethereum (ETH). The data comes amid heightened volatility triggered by a public dispute between President Donald Trump and Elon Musk, sparking a sudden downturn across major crypto assets.
Bitcoin briefly dipped around 5% toward $100,000, while Ethereum dropped nearly 10% below $2,400 before staging a partial recovery.
Macro Uncertainty and Political Tensions Add to Pressure
Analysts point to a combination of political tension and macroeconomic fears as the root cause of the sharp selloff. The Trump-Musk clash over a controversial tax and spending bill amplified uncertainty in already jittery markets, leading to cascading liquidations across major exchanges.
The feud coincided with large volume moves, especially in BTC and ETH derivatives markets, catching many traders off guard.
These liquidation figures, while significant, may actually underrepresent the true total, as they only reflect publicly disclosed exchange data.
Traders Eye CPI Data as Next Catalyst
Looking ahead, investors are closely watching the upcoming U.S. Consumer Price Index (CPI) data release on June 11, which could serve as the next major driver of market direction.
A surprise reading could further shake markets, particularly given the current sensitivity to macro indicators.
X Partners With Polymarket for Onchain Predictions
In a major development, Elon Musk’s X platform has announced a partnership with Polymarket, officially naming it the prediction market partner for the social media platform. With over 600 million monthly active users, the collaboration signals X’s most substantial integration with blockchain technology to date.
Polymarket’s decentralized prediction tools will allow X users to engage with real-time forecasting tied to news and global events.
This move aligns with Musk’s previously stated admiration for prediction markets, which he has described as more accurate than traditional polling during key elections.
Industry Response and Outlook
The market is now in a critical phase, balancing recovery attempts against ongoing macro risk and political developments. The X–Polymarket partnership may also set the stage for broader adoption of decentralized applications within mainstream platforms.
As volatility remains high, traders are advised to remain cautious and monitor key support levels and upcoming economic data.
