- Crypto prices plummeted Thursday after Elon Musk posted a tweet suggesting he’d broken up with Bitcoin.
- Bitcoin, Ethereum, and various DeFi tokens are in the red.
- The crash liquidated $600 million worth of futures positions in the crypto derivates market.
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The cryptocurrency market slumped Friday morning after Elon Musk called an end to his love for Bitcoin.
Elon Musk Shakes Bitcoin Price
Bitcoin’s price dropped 7.6% from yesterday’s $39,250 closing to lows of $36,250 following a tweet from Elon Musk.
The Tesla and SpaceX founder, who has 56.5 million Twitter followers, posted a meme alluding to a relationship break-up with the hashtag “Bitcoin” and a broken heart emoji last night.
— Elon Musk (@elonmusk) June 4, 2021
Bitcoin’s negative price action dragged the broader crypto market along with it. Dogecoin, Musk’s preferred cryptocurrency, dropped by 10.65%, while Ethereum posted a 9.5% loss.
Several governance tokens for blue chip DeFi projects like Aave, Synthetix, and Sushi also suffered double-digit percentage losses.
The technical term for Bitcoin’s latest price action is a bull trap. BTC surged past the resistance from the symmetrical triangle around $38,400, building the market’s confidence for a continued uptrend.
However, the breakout was reversed quickly after Musk’s social media post.
The price action led to nearly $600 million worth of liquidations on the futures market.
The top two cryptocurrencies, Bitcoin and Ethereum, accounted for 54% of the liquidations. Nearly $150 million worth of DOGE and XRP futures positions were also slaughtered.
The sudden crash reflects the lack of bullish strength and fear in the market. Musk has been a catalyst for similar price moves in the past. He recently announced that Tesla would stop receiving Bitcoin payments, sending the market into freefall. Despite the U-turn, the company is…