Bitcoin Plummets as Trump and Musk’s War of Words Shakes Crypto Markets: Why $92K Could Come Sooner Than You Think
Bitcoin tumbles below $101K after a fiery Trump-Musk clash fuels investor panic — discover what’s next for BTC prices in 2025.
- $84B wiped from Bitcoin’s market cap Thursday
- $1.47B/day in profits realized by long-term investors last week
- $103K key support—BTC risks dropping to $92.5K if not quickly regained
- $337M in futures liquidated in a single day
Bitcoin is reeling from its sharpest pullback in months. Prices plunged 3% Thursday—sending shockwaves across the crypto world—erasing over $84 billion in total value.
But this isn’t just another ordinary correction. Behind the carnage lies a perfect storm: a fresh political feud between Donald Trump and Elon Musk, turbocharged profit-taking from seasoned holders, and mounting recession jitters.
Bitcoin’s Bull Run Sputters: What’s Fueling This Correction?
Bitcoin extended its weekly losses past 4%, dropping below the crucial $101,000 mark. The long-term holders—the backbone of crypto’s bullish cycles—are cashing out in force. According to a Glassnode report, daily realized profits surged to a staggering $1.47 billion last week, with LTHs pocketing the lion’s share and outpacing short-term traders nearly threefold.
This level of profit-taking typically signals two things: a market maturing—and possibly running out of fuel. LTHs, once hailed as “diamond hands,” now show signs of exhaustion just as macroeconomic risks begin to swirl.
How Does Trump vs. Musk Impact Bitcoin Prices?
Political fireworks erupted as President Trump and Tesla founder Elon Musk traded public barbs over the divisive “One Big Beautiful Bill Act.” Musk lambasted the bill—which could pile another $2.4 trillion onto the deficit—as reckless. He warned it may bankrupt the country and trigger a recession by year-end, especially with new tariffs looming.
Trump fired back, claiming Musk’s criticisms are linked to cuts in EV tax credits—a blow to Tesla’s bottom line. This public spat, alongside tepid job data and fears of recession, has shaken investor confidence well beyond Wall Street.
Looking for reliable coverage on the evolving crypto market? Track updates via CNBC or on Reuters.
What Happens if Bitcoin Breaks $92,500?
BTC’s technical picture just got ugly. If prices can’t rebound above $103,000 fast, analysts warn a swift plunge to $92,500 is likely—the next major support, underpinned by the 100-day Simple Moving Average.
A wave of forced liquidations has already swept through the market: $337 million in futures were wiped out Thursday, hitting long traders especially hard. Bitcoin’s Stochastic Oscillator is deep in the oversold zone—a classic signal for high volatility and possible relief, but not without risk of further downside.
Q&A: Is Now a Smart Time to Buy the Dip?
Q: Should I be buying Bitcoin after this crash?
A: While some see oversold technicals as opportunity, the ongoing macro uncertainty and heavyweight selling from LTHs suggest caution. Watch for stabilization above $103K before considering new bullish bets.
Q: What factors could quickly reverse Bitcoin’s slump?
A: A surprise macro boost—such as improved job numbers or easing tensions between political heavyweights—could revive sentiment. Any signal that LTHs are HODLing again would be bullish.
How to Protect Your Crypto Portfolio Now
- Monitor Bitcoin’s movement around the $103,000 and $92,500 levels closely
- Beware of rapid liquidations that can exaggerate price moves
- Consider using stop-losses and scaled entries
- Stay informed via credible outlets like Coinbase or CoinDesk
Bottom line: Bitcoin is at a crossroads, rocked by high-profile political feuds and record-breaking profit-taking. If you’re trading this volatility, stay alert and stick to a disciplined plan.
Action Checklist:
- Watch BTC’s reaction at $103K and $92.5K support
- Track macro news: job data, government policy, and recession signals
- Only invest what you can afford to lose amid high turbulence
- Set reminders for upcoming key announcements
Stay tuned and stay sharp — the next big shift in the crypto market could be just around the corner.
