On the evening of June 5, 2025, the price of Bitcoin experienced a sharp decline, temporarily dropping to $100,372. This occurred against the backdrop of a conflict between billionaire Elon Musk and U.S. President Donald Trump. The daily liquidation volume in the cryptocurrency market reached nearly $1 billion, and the fear and greed index dropped by 11 points, indicating a dominance of fear among investors.
This is reported by Business • Media
Cryptocurrency Market Dynamics
After the rapid decline, the price of Bitcoin partially recovered and is currently trading slightly below $103,000. Along with Bitcoin, other digital assets in the top 10 by market capitalization also saw declines: Dogecoin lost 7%, Ethereum dropped by 5.92%, and Cardano fell by 5.37%. The majority of liquidations were concentrated on long positions, with Bitcoin and Ethereum suffering the greatest losses.
The fear and greed index, which reflects market sentiment, fell from the “green” zone to the “orange” zone in just one day, signaling the prevalence of panic among market participants.
“The fear and greed index plummeted by 11 points in a day. The indicator dropped from the ‘green’ zone to the ‘orange’. This indicates a predominance of fear in the market.”
Stock Market Decline and Causes of the Crash
A significant downturn was recorded not only in the cryptocurrency market but also in the stock market. The S&P 500, Dow Jones Industrial Average, and Nasdaq 100 indices fell by 0.53%, 0.25%, and 0.8%, respectively. The decline also affected shares of technology and automotive companies. For instance, Tesla’s stock lost over 14%, the meme coin TRUMP dropped by more than 18%, and shares of Trump Media & Technology Group Corp fell by 8%.
The cause of the sharp volatility was the public disputes between Elon Musk and Donald Trump. On June 3, Musk criticized the new bill “One Big Beautiful Bill,” calling it a “disaster.” In response, White House Budget Director Russell Vought emphasized that critics of the bill were exaggerating the potential increase in the budget deficit and that the proposed measures should positively impact the country’s financial situation.
Donald Trump, for his part, expressed disappointment with Musk’s statements, pointing out his dependence on government subsidies and contracts. In response, Musk announced his intention to cease operations of the Dragon spacecraft and emphasized that without his support, Trump would not have been able to win the election. Musk also made a series of sensational statements regarding the president and even conducted a poll about forming his own political party.
These events exerted significant pressure on the markets, provoking mass liquidations of positions and declines in key indices and assets in both the cryptocurrency and traditional financial sectors.
