Trump’s Crypto Boost Fails as Bitcoin Crash Triggers $744M Liquidations
Trump posted bullish remarks on Truth Social, calling the U.S. the “crypto capital” and saying he would “NEVER let Crypto down.” However, a Bitcoin crash hit the market within 24 hours.
Bitcoin (BTC) slid toward the ~$73,200 area, while Ethereum (ETH) fell over 4.8% to around $1,987 and closed below the $2,000 level for the first time since March. Ripple (XRP) dropped about 4% to roughly $1.27, breaking under the $1.30 support zone.
The selloff was tied to escalating U.S.-Iran military strikes and a broader risk-off shift into cash and gold, which accelerated margin liquidation cascades. Derivatives stress spiked: liquidations reached roughly $744M, with most losses from long positions. At the same time, institutional spot Bitcoin demand weakened, with single-day outflows from spot Bitcoin ETFs around $733M (led by BlackRock’s IBIT).
Technicals also worsened. BTC and ETH traded below short-term 50/100-day EMAs, and BTC stability above ~$73,000 became a key line. If the Bitcoin crash extends, price may revisit the ~$70,000 psychological area. Although Trump also referenced the CLARITY Act and CFTC-related policy, spot-demand support did not materialize—liquidation-driven selling dominated the tape.
Bearish
Despite Trump’s bullish messaging, the market response is dominated by the Bitcoin crash and liquidation mechanics. Long liquidation volume (~most of total liquidations) suggests leveraged longs were forced out, worsening momentum and keeping selling pressure active. Spot Bitcoin ETF outflows reinforce that demand is not replacing the liquidation-driven supply. Technically, BTC/ETH trading below key short-term EMAs and BTC needing to hold ~$73,000 implies rallies may struggle until stabilization appears. In the short term, expect volatility and downside continuation risk if risk-off flows persist. In the long(er) direction, a sustained ETF outflow trend and failed “dip-buying” sentiment would keep rallies capped, though the bearish pressure would ease only after liquidations cool and BTC reclaims key moving-average levels.