The crypto market is going through a big crash today. The global market cap is down to $3.35 trillion, which is a 3.8% drop in 24 hours. Trading volume is high at $144 billion, but it’s not helping prices. Bitcoin dominance stands at 61.5%, while Ethereum is at 8.94%.
So, why is the crypto market down today? The answer involves many things: a political clash, whale selling, and market fear.
A big reason behind the crypto crash today is the heated argument between Elon Musk and Donald Trump. The two famous billionaires are clashing over a new U.S. budget bill.
Elon Musk publicly asked people to reject the bill, saying:
“Call your Senator. Call your Congressman. Bankrupting America is NOT ok! KILL the BILL.”
Source: X
In reply, Trump warned that removing Elon’s government support could save billions for the country. Soon after, Tesla’s stock fell 17%, losing over $100 billion in value. This negative vibe moved into the industry, hurting prices badly.
Even the Official Trump Coin price took a hit. It crashed over 11% in one day and is now trading at $9.69 with a market cap of $1.93 billion.
The clash also hit Bitcoin’s price. It is currently trading at $103,803.94, down more than 1% today.
On the technical side, things don’t look good either. A well-known trader, James Wynn, got liquidated three times and ended up closing all his Bitcoin long positions. In total, he lost over $20.48 million on Hyperliquid, including 155.38 BTC worth $16.14 million.
Source: Coinglass
A 12-hour liquidation heatmap shows that $65.92 million in crypto positions have been wiped out. Out of this:
$38.89 million were shorts (bets on falling prices)
$27.03 million were longs (bets on rising prices)
This shows high risk on both sides, with more damage to those betting against the trend.
The Fear and Greed Index is now at 45 (Fear), which was Greed (60) just a week ago. This shift means investors are getting scared, and when fear rises, prices often fall.
Many traders are asking: What is going on with crypto today?
The next FOMC (Federal Reserve) Meeting on June 17–18 is another one to watch. Folks are concerned that the Fed may do things that introduce a squeeze to liquidity, which usually sends risk assets like cryptocurrency lower still.
So why is crypto crashing today? It's not one particular thing. The Elon vs Trump war, hyperbolic Bitcoin losses, whale liquidations, and coming Fed actions all contribute to the squeeze. A lot of investors are opting to sit it out for now, seeing what the next move will be.
Disclaimer: The purpose of this article is for information only. It is not an investment advice. Always research for yourself before making any investment decision.
Also read: Hrum Quote of the Day 06 June 2025: Reward 150 Coins
Deepmala Upadhyay is an experienced crypto journalist, content strategist, and News writer with over 5 years of expertise in writing and the crypto industry. Holding a Bachelor's Degree in Computer Science and a deep understanding of blockchain technology and financial markets, she excels in delivering exclusive news, in-depth research blogs, and expertly crafted on-page SEO content. As a team lead and content writer at CoinGabbar, Deepmala is responsible for analyzing blockchain technologies, cryptocurrency, price movements, and the crypto market with precision and insight. Her keen ability to create well-researched, impactful content, combined with her expertise in market analysis, makes her a trusted voice in the crypto space.
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