Crypto Markets Rattle as Nearly $1 Billion in Leveraged Positions Wiped Out Amid Macro Uncertainty

The cryptocurrency market was rocked on Thursday, with nearly $1 billion in leveraged positions liquidated in just 24 hours. According to data from Coinglass, over 223,000 traders were caught in the downturn, losing a combined $980.9 million—though the actual number could be higher due to limitations in publicly reported data.

Most of the losses came from long positions, with $876.2 million liquidated as prices for major cryptocurrencies, including Bitcoin and Ether, plunged unexpectedly. Bitcoin alone saw $341.7 million in liquidations, 90% of which were long bets. Ether followed with $285.6 million. Other major altcoins like Solana, XRP, and Dogecoin also experienced heavy losses.

Vincent Liu, Chief Investment Officer at Kronos Research, called the event a “perfect storm” triggered by broader market anxieties and political drama.

“The Trump-Musk feud, rising tariff fears, and a massively over-leveraged crypto market all collided,” Liu said. “In crypto, sentiment-driven dips can quickly spiral into systemic selloffs due to automatic liquidations.”

The market's fragility was already in focus. Bitcoin had recently surged to a record high of around $111,800 before settling around $105,000. But tensions escalated Thursday when former U.S. President Donald Trump and Elon Musk publicly clashed over a controversial tax-and-spending bill. Musk condemned the legislation as a “disgusting abomination,” sparking fears of policy retaliation that rippled through financial markets.

Bitcoin briefly dropped to $100,000—its lowest level in weeks—before rebounding slightly to $103,333 at the time of writing. The rapid swing blindsided traders who had bet heavily on continued upward momentum.

“Bitcoin was trading near critical support after pulling back from its peak,” said Nick Ruck, director at LVRG Research. “Markets were already jittery. When the Trump-Musk spat erupted, it was enough to shake confidence and trigger widespread liquidations.”

As the dust settles, investors are now turning their attention to key economic indicators due in the coming days. U.S. employment data is set for release Friday, followed by inflation data on June 11. Analysts say both could influence the next big move in crypto markets.

Liu added that macro signals—especially U.S.-China relations, potential tariff policy changes, and institutional capital flows—remain critical.

“The market is still fragile. Until leverage is reined in, volatility will remain elevated.” he said.