On June 5, 2025, the cryptocurrency Bitcoin experienced a sharp decline, temporarily dropping to $100,372, according to TradingView data. The daily liquidation volume in the market reached nearly $1 billion, marking one of the highest figures in recent times. After the drop, Bitcoin’s price partially recovered, and at the time of this publication, the asset is trading slightly below $103,000.
This is reported by Finway
Significant Fluctuations in Cryptocurrency and Stock Markets
The sharp decline in Bitcoin’s price also led to a drop in other major cryptocurrencies within the top 10 by market capitalization. The most affected were Dogecoin (down 7%), Ethereum (down 5.92%), and Cardano (down 5.37%). The total liquidation volume exceeded $980 million, with the majority consisting of long positions. Bitcoin and Ethereum suffered the largest losses.
The Fear and Greed Index in the crypto market dropped by 11 points over the day, moving from the “green” to the “orange” zone, indicating a dominance of panic sentiments among investors.
At the same time, negative dynamics were observed in the stock markets: the S&P 500 index fell by 0.53%, the Dow Jones Industrial Average by 0.25%, and the Nasdaq 100 by 0.8%.
Reasons for the Decline: Musk and Trump’s Conflict
The primary reason for the correction, according to experts, is the escalation of the dispute between entrepreneur Elon Musk and U.S. President Donald Trump. On June 3, Elon Musk criticized the “One Big Beautiful Bill” legislation, posting sharp remarks about its content on X.
“Musk called the bill ‘garbage,’ while White House Budget Director Russell Vought emphasized that critics are significantly exaggerating the expected increase in the deficit, while the proposed measures could improve the country’s financial situation.”
In response, Donald Trump expressed disappointment with Musk’s position, stating that the billionaire has ‘lost his mind’ over the withdrawal of the government mandate on electric vehicles. The President also emphasized that further budget cuts could be achieved by halting subsidies to Musk’s companies.
In response, Elon Musk announced plans to retire the Dragon spacecraft and stressed that without his support, Trump would not have been able to win the election. Later, Musk claimed that the President’s surname allegedly appears in undisclosed documents related to Jeffrey Epstein’s investigation. Following this, the entrepreneur conducted an online poll regarding the creation of his own political party.
The crash also affected Tesla’s stock, which fell by more than 14%, the meme coin TRUMP dropped by over 18%, and shares of Trump Media & Technology Group lost 8% of their value.