The growing public conflict between Tesla CEO Elon Musk and U.S. President Donald Trump is having a profoundly negative impact on the cryptocurrency market. Over the last 24 hours, the total amount of liquidations has increased to around $1 billion.
Seven of the top ten cryptocurrencies reported losses today, and the market capitalization as a whole has decreased.
How did the Trump-Musk feud impact the crypto market?
Musk’s criticism of the President’s tax and spending measure caused tensions between him and Trump to flare.
I’m sorry, but I just can’t stand it anymore.
This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination.
Shame on those who voted for it: you know you did wrong. You know it.
— Elon Musk (@elonmusk) June 3, 2025
As Trump ignored Musk’s remarks and accused him of having “Trump Derangement Syndrome,” the feud intensified. Additionally, Trump threatened to cancel contracts and government subsidies for Musk’s companies.
Personal scandals and policy differences are among the unpredictable variables that have been injected into the market by the conflict, which is being played out publicly on X.
Time to drop the really big bomb:@realDonaldTrump is in the Epstein files. That is the real reason they have not been made public.
Have a nice day, DJT!
— Elon Musk (@elonmusk) June 5, 2025
Additionally, the market is under a lot of downward pressure, which has shaken investor confidence. According to data, the overall market capitalization of cryptocurrencies decreased by 5.1% in the last day.
Over the previous day, seven of the top ten coins have lost value. Dogecoin (DOGE), Musk’s preferred cryptocurrency, fell the most, 7.9%, followed by Ethereum (ETH), which fell 6.6%.
Bitcoin (BTC) dropped 2.4%, hitting the $105,000 threshold. Additionally, the President’s meme coin suffered. The most recent statistics showed that Official Trump (TRUMP) was down 10.8%.
Due to the forced closure of numerous leveraged positions, this price decline increased volatility and set off a wave of liquidations. The total amount of liquidations over the last 24 hours was $988.09 million, according to Coinglass data.
During this time, 228,646 dealers were liquidated, demonstrating the magnitude of the market’s response. The sell-off hit Bitcoin most, with long positions liquidating for $308.1 million and short positions liquidating for $33.8 million. Ethereum came in second, with $26.3 million in short sales and $260.1 million in long sales.
The magnitude of the risk-off mood was reflected in the fact that long positions contributed $888.7 million to the total liquidations, while short positions contributed $99.3 million.
That’s not all. The Bitcoin Coinbase Prime Index, a key indicator of US institutional investor sentiment, also turned negative.
‘The Coinbase Prime Index just flipped negative, showing that US institutional investors and whales suddenly turned bearish. Let’s see how this plays out in the short term, but there’s a new narrative unfolding right now, just as the “Trade War” theme was starting to lose its impact,” an analyst wrote.
“Elon Musk and Donald Trump have created a fake ‘beef’ to push the markets lower. This is manipulation of the highest order. It’s insane to think they would do this,” a market watcher stated.
Will Bitcoin benefit from the Trump-Musk fallout?
Concerns on longer-term economic effects have been highlighted by the fallout, in addition to the short-term volatility. Musk has publicly warned that Trump’s tariff measures could cause a US recession in the second half of 2025.
The Trump tariffs will cause a recession in the second half of this year https://t.co/rbBC11iynE
— Elon Musk (@elonmusk) June 5, 2025
Trump’s trade policies have already contributed to market turbulence earlier this year, so this warning is in line with broader market concerns. Nevertheless, some believe that Bitcoin may gain from the deterioration in the Trump-Musk relationship.
“The downfall of Elon Musk and Trump’s relationship will be marked by the printing of money like we’ve never seen before. Bitcoin is going to fkn explode. Brace yourself,” a user claimed.
Bitinning’s founder, Kashif Raza, added that the controversy may affect Bitcoin in a number of ways. His piece examined a number of possibilities, including Musk being deported, Trump enforcing sanctions or cutting off support to Musk’s businesses, or Musk using Bitcoin to get over limitations. If Musk decides to run for government, it also takes into account the prospect of his taking Bitcoin donations.
Elon Musk and Donald Trump’s fight has an impact on Bitcoin:
-> Trump ordering sanctions and cancellation of subsidies to Elon’s companies
-> Elon Musk might be deported from the USA.
-> Elon Musk, to bypass sanctions, might opt for Bitcoin.
-> If Elon decided to contest…— Kashif Raza (@simplykashif) June 5, 2025
Although it’s unclear if these possibilities will come to pass, one thing is certain: the ongoing Trump-Musk spat will probably keep the cryptocurrency market on edge due to its repercussions.
Metaplanet goes all in on Bitcoin plans to raise $5.4B to buy Bitcoin
Simon Gerovich, CEO of Metaplanet, announced the company’s lofty goal of 210,000 Bitcoin by 2027. The business intends to raise $5.4 billion as part of it.
To increase its holdings of Bitcoin, the Japanese investment firm Metaplanet has revealed a massive $5.4 billion equity financing proposal. The company intends to use the volatility and market demand of its stock to issue 5.55 billion additional shares using floating strike price warrants as part of the plan. Crucially, this action supports the business’s audacious goal of acquiring 210,000 Bitcoin by 2027. What implications does this have for Bitcoin’s future?
Metaplanet to raise $5.4B for Bitcoin
Simon Gerovich, the CEO of Metaplanet, recently shared the Japanese company’s strategic equity funding plan with a Bitcoin focus in an X post. The corporation wants to raise 770.9 billion yen ($5.4 billion) by issuing 5.55 billion new shares in order to buy more Bitcoins.
Metaplanet has launched Asia’s largest-ever equity raise dedicated to Bitcoin:
🚀 ¥770.9 billion (~$5.4B) capital raise
📈 555 million shares via moving strike warrants
🥇 First in Japan: issued at a premium to market — enabled by Metaplanet’s high volatility and deep liquidity… pic.twitter.com/UlXHneyDzo— Simon Gerovich (@gerovich) June 6, 2025
Notably, BTC has seen “Asia’s largest-ever equity raise,” according to Simon Gerovich. Gerovich recognizes that the prior 210 million deal was a tremendous accomplishment. In just 60 trading days, the company raised ¥93.3 billion, or almost $650 million. Since the announcement, the company’s share price has more than tripled, and the plan produced a significant 189% return on the Bitcoin investment. Furthermore, this accomplishment moved Metaplanet among the top 10 Bitcoin holdings worldwide.
At 1,341 yen, down 1.61%, the stock price of Metaplanet Inc. is currently a little low. Nonetheless, the share has experienced an impressive increase of more than 213% in a single month and close to 285% so far this year.
How Metaplanet’s investment Strategy shapes Bitcoin’s future?
It’s interesting to note that this comes just after the company recently paid $117.3 million for 1,088 BTC. The acquisition brings the Japanese company’s total Bitcoin holdings to 8,888 BTC ($933 million), which is an astounding 88.9% of its 10,000 BTC goal.
Metaplanet is actively pursuing its Bitcoin strategy with this money, with goals of 210,000 BTC by 2027 and 100,000 BTC by 2026. This is especially significant because it represents an astounding 1% of the whole Bitcoin supply. The company’s belief in Bitcoin’s long-term worth and its determination to establish itself as a major force in the digital asset market are demonstrated by the vision.
The Japanese company is establishing a standard in the cryptocurrency sector with its audacious Bitcoin accumulating plan. In addition to securing a sizeable amount of Bitcoin’s supply, the company’s equity financing approach attracts more institutional investment by demonstrating its strong commitment to the digital asset ecosystem.
Additionally, the company’s ambitious BTC ambitions and extensive financing strategy demonstrate its great belief in the future of the cryptocurrency. The adoption of Michael Saylor’s Strategy and Metaplanet by other financial behemoths may be prompted by this action as well.
Shiba Inu price signals 28% crash after bearish pattern breaks
A whale moves 100B SHIB to Binance, causing the price of Shiba Inu to form a bearish head and shoulders pattern that predicts a 28% collapse to $0.000009.
After over $1 billion in cryptocurrency market liquidations on June 6 drove meme coin prices lower, Shiba Inu (SHIB) is currently trading at a monthly low. After emerging from a bearish head and shoulders pattern, the price of Shiba Inu is now encountering additional bearish headwinds as whale selling activity increases. This breakout can cause the price to drop 28% to $0.000009.
The price of SHIB is currently trading at $0.0000122, down 4.5% in the last day. According to CoinMarketCap data, the daily trading volumes increased by 90% to $266 million, most likely due to sell-side volumes.
Shiba Inu price risks 28% crash as bearish pattern emerges
A bearish head and shoulders pattern has formed on the Shiba Inu pricing one-day chart. This pattern typically indicates an impending change in the trend’s direction, in this example from bullish to bearish.
SHIB, one of the best-performing meme currencies in May, has fallen below this bearish pattern’s neckline, which typically indicates a possible crash. The price of SHIB might drop by 28% to $0.000009, its lowest level since January 2024, after breaking through this support level.
The upward-sloping ADX line indicates that the head and shoulders pattern’s possible decline is likely to materialize. The rising movement of the indicator indicates that the present downward trend may continue, increasing the likelihood of a Shiba Inu price fall to $0.000009.
After a rapid decline, the RSI indicator indicates that the bearish momentum is getting stronger. The movement of the signal suggests that the head and shoulders pattern’s negative trend may materialize.
Whale moves 105B SHIB to Binance after 3 years
Following a big address that sent 105 billion SHIB tokens to the Binance exchange, the bearish technical structure on the price of Shiba Inu is accompanied by a massive whale move. These tokens had lain dormant for three years, according to Arkham data.
When 11 trillion SHIB tokens fell in value, suggesting possible surrender, the selloff by this big address coincided with significant dealer losses. If the meme token reaches a local bottom following the recent decline, it may allow the price of SHIB to rise once the selloff subsides.
In conclusion, a bearish head and shoulders pattern has formed on the daily chart, putting the price of Shiba Inu at risk of plunging further 28%. Following a sharp increase in trader losses, whales and long-term holders seem to be giving up. As adverse headwinds get stronger, the price of SHIB may drop to $0.000009.
