Bitcoin Falls Under $100K as Investors Cash Out and Trump-Musk Feud Adds Pressure
Bitcoin (BTC) has once again caught the market’s attention, slipping below the psychologically significant $100,000 mark. Following an impressive rally in recent months, the world’s leading cryptocurrency is now facing selling pressure triggered by investors locking in profits alongside a high-profile political clash between former US President Donald Trump and Tesla CEO Elon Musk. Together, these factors have injected volatility and uncertainty into the market.
Over the last 24 hours, Bitcoin’s price has seen a noticeable decline, sparking speculation that a broader market correction may be underway. Analysts caution that the current pullback could deepen, signalling a potentially choppy period ahead.
But what exactly is driving Bitcoin’s recent stumble? And why should a political spat between two influential figures impact the crypto market so heavily? Let’s delve into the details.
@grok what is all this about? Why is Elon now turning against Trump?
— GKA (@gatta9707_) June 6, 2025
Profit-Taking at Play: Bitcoin Hits a Psychological Barrier
Bitcoin’s recent surge has been extraordinary, smashing past records and reinforcing its status as the dominant digital asset. Yet, as it nears and briefly crosses the six-figure threshold, many early investors are opting to secure their gains by selling off portions of their holdings.
This kind of profit-taking is typical in markets when an asset approaches a key price milestone. Traders become increasingly cautious, expecting a potential reversal or correction. The drop below $100,000 appears to validate these concerns, as selling volumes rise and technical indicators flash warning signs.
This behaviour is nothing new, but it highlights a classic tug-of-war between optimism and caution among market participants.
The Trump-Musk Feud: Why Crypto Investors Are Watching Closely
What could have been a routine price correction has been amplified by an unexpected twist: a very public dispute between Donald Trump and Elon Musk.
Musk, known for his vocal support of cryptocurrencies like Bitcoin and Dogecoin, has wielded significant influence over crypto sentiment. Meanwhile, Trump remains a staunch critic, frequently voicing doubts about the legitimacy and stability of the crypto industry.
Recently, the two billionaires exchanged pointed remarks, with Trump questioning Musk’s credibility and business motives, and Musk responding with sharp retorts. While this might appear as little more than celebrity drama, the crypto community views it through a different lens.
Investors interpret this feud as a signal of mounting political risk — especially with Trump’s increasing sway as the US election approaches. The possibility of regulatory crackdowns under a Trump-led administration fuels bearish sentiment, making the market more jittery.
Technical Analysis: Warning Signs on the Charts
Apart from the political backdrop and profit-taking, Bitcoin’s technical charts are signalling vulnerability.
Price action has slipped beneath critical support levels, with patterns resembling a “head-and-shoulders” formation emerging on daily charts — a classic harbinger of bearish trends. Momentum indicators such as the Relative Strength Index (RSI) are trending lower, while the Moving Average Convergence Divergence (MACD) hints at a bearish crossover.
These technical clues suggest that Bitcoin’s recent surge may have reached its short-term peak, paving the way for a deeper correction before the price finds stable ground again.
Market Sentiment Turns Cautious
Crypto investors are typically resilient, but sentiment can shift rapidly — often with sharp swings. Currently, fear is creeping into the market, replacing the greed that characterised the earlier rally.
Market participants are increasingly concerned about speculative excess, institutional sell-offs, and a potential cascade of liquidations. When traders take on excessive leverage during a rally, even a small price drop can trigger forced liquidations, amplifying the downward momentum.
Data from futures and options markets confirm that volatility expectations are rising, with investors pricing in a bumpy ride over the coming weeks.
External Factors and Market Psychology
Narratives matter hugely in crypto, and right now the story is complicated.
A cocktail of profit-taking, negative headlines, and fraught political dynamics has unsettled investor confidence. The ongoing feud between Trump and Musk adds a further layer of uncertainty, pushing the market closer to its psychological tipping point.
While long-term holders remain relatively calm, short-term traders are reacting swiftly. Panic selling, algorithmic triggers, and herd behaviour are contributing to the market’s current downward pressure.
What Lies Ahead: Is More Downside on the Cards?
Despite the present turbulence, Bitcoin’s fundamentals remain robust. Institutional adoption continues to grow, and the underlying blockchain network remains strong. However, the short-term outlook is cautious.
Should Bitcoin fail to reclaim the $100,000 level soon, analysts warn it may test deeper support zones around $92,000 to $95,000. Breaking below these could accelerate declines toward $88,000 or even lower in the near term.
Still, this isn’t unfamiliar territory for Bitcoin. The cryptocurrency has weathered far worse corrections and rebounded. But the added complexity of political drama and heightened media attention makes the current phase especially precarious.
What Should Investors Do?
If you’re new to cryptocurrency, this period may feel unsettling. However, experienced traders know that corrections are a natural part of any market cycle.
Whether you’re investing for the long haul, trading actively, or simply observing, keep these points in mind:
- Avoid making decisions based on panic or hype
- Monitor key technical indicators for clues on trend direction
- Stay updated on political developments that could impact regulation
- Diversify your investment exposure to mitigate risk
Remember, a short-term price dip does not negate Bitcoin’s long-term growth potential or the promise of blockchain technology.
Final Thoughts: Navigating Noise and Reality
Bitcoin’s recent drop below $100,000 is more than just a price correction — it reflects a market grappling with profit-taking, political tensions, and shifting psychology.
While the spotlight is on the Musk-Trump clash, the broader lesson is about market maturity. Every correction tests investor conviction, and every rally underscores cryptocurrency’s expanding role in global finance.
This downturn is a cautionary moment, not a crisis. Whether Bitcoin recovers swiftly or ventures lower before stabilising, one thing remains clear: Bitcoin continues to be one of the most dynamic and fascinating assets in the modern financial landscape.
