Bitcoin futures rattle with political shock – $324 million was liquidated in one day

Bitcoin experienced a sharp decline when the cryptocurrency market reacted to political tensions between Elon Musk and U.S. President Donald Trump. The unexpected conflict began with Musk’s public criticism of the government’s “big bill” proposed on X, saying it was a damage to innovation and digital freedom. In response, Trump’s speculation and uncertainty about financial markets drove comments. A sudden confrontation between two of the most influential voices in finance and technology quickly poured into the cryptocurrency space.

Within the hours after the exchange, Bitcoin fell by more than 5%, breaking through short-term support levels and causing volatility among major altcoins. The futures market sold more than $324 million in a long position at a conference, one of the biggest liquidation events in 2025, according to data from encrypted data. Traders were caught off guard because the direction’s sentiment flipped rapidly, reflecting growing uneasiness.

Now, as participants digest political consequences and their potential impact on regulation, taxation and broader economic sentiment, the short-term risks faced by the market are increasing. While Bitcoin still exceeds the $100,000 trademark, confidence has taken a hit and the coming days may decide whether this is a temporary swing or a deeper correction begins.

Political tensions spark volatility and liquidation

Bitcoin is at a critical moment as it hovers below its all-time high of $112,000. The wider market is paying close attention, and is expected to be either a breakthrough in price discovery or a deeper backtrack of the gradual disappearance of momentum. The Bulls kept control above $100,000, but the recent surge in volatility has adjusted the risk growth. Macroeconomic headwinds – especially the yields and global uncertainties of the U.S. treasury – put the market on the edge. Now, political frictions are adding fuel to the fires.

The latest source of instability comes from the explosive clash between Elon Musk and U.S. President Donald Trump. Their public disagreement over the controversial “Big Beautiful Act” and Musk’s criticism on X scared investors across the board. According to top analyst Axel Adler, the conflict triggered one of the sharpest reactions in the crypto derivatives market this year. Bitcoin futures saw over $324 million in long-term liquidation in a matter of hours, marking a major shift in short-term sentiment.

If Bitcoin fails to recover momentum in the $110K region, traders may start focusing on downside targets. Adler refers to $97,500, which is the recent support level, consistent with the price achieved by Short-term Holders (STH). A drop below this level may accelerate the decline and turn the movement amount while turning the movement force. However, if BTC holds the current ground and restores emotions, the foundation remains intact to continue new highs.

Bitcoin maintains critical support as Bull defends $103,600

Bitcoin has shown resilience after a quick review of $112,000, bounced from a support level of $103,600 and marked by strong historical relevance and consistency with the 34-day EMA. As can be seen from the chart, BTC hit the area at a low price of $101,159 and then quickly retracted the higher ground, and currently trading close to $103,743.

The rebound formed higher lows in the broader uptrend, indicating that the Bulls have not yet given up on control. However, the failed breakout exceeds $109,300 highlights resistance pressure, and BTC needs to decisively tilt that level to support to confirm the bullish continuation.

The latest number of candles indicates buyers are stepping in, but the lack of a strong surge indicates market warning. The 50-day SMA (green) maintains an upward tilt, providing medium-term support, while the 100-day and 200-day SMA is still below the trend below, enhancing bullish bias unless the price drops below $100,000.

Currently, the level to watch is $103,600. The fault below may open the door to further drop to the $98K-$100K range. On the other hand, the continued push is above $106K, which may invite bullish momentum and retest the barriers to $109K.

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