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    You are at:Home » What are the reasons behind today’s cryptocurrency market decline?
    CRYPTOCURRENCY

    What are the reasons behind today’s cryptocurrency market decline?

    By adminJun. 6, 2025003 Mins Read
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    What are the reasons behind today's cryptocurrency market decline?
    What are the reasons behind today's cryptocurrency market decline?
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    Crypto Market Crash Wipes Out $95 Billion

    On June 6, the crypto market crash wiped out $95 billion from total market value. The global market cap dropped 3.03%, falling to $3.2 trillion, according to CoinMarketCap. During the decline, the Bitcoin price dropped to $101,928.79, while Ethereum fell 3.73% to $2,489. XRP also declined, losing 3.34% to reach $2.13.

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    According to Coinglass, crypto liquidations in the last 24 hours surpassed $595 million. Over 156,000 traders were liquidated during the period. The largest single liquidation came from a Binance ETH/USDT trade worth $9.48 million. Among top assets, Bitcoin accounted for $171 million in total liquidations, followed by Ethereum liquidation at $143 million. XRP liquidations stood at $16.6 million, while Solana and Dogecoin faced liquidations of $40 million and $22.52 million, respectively. Out of the total, $547 million came from long positions, while short trades made up $50.08 million. This imbalance indicates a significant long squeeze. The sharp forced exits pushed Bitcoin, Ethereum, and XRP closer to critical support zones during the crypto market crash, reflecting rapid de-risking across major assets.

    Trump–Musk Crypto Clash Triggers Sell Pressure

    The Trump Musk crypto conflict intensified on June 5. Tesla CEO Elon Musk posted on X:

    “Call your Senator. Call your Congressman, Bankrupting America is NOT ok! KILL the BILL.”

    Musk urged lawmakers to reject a proposed budget bill. Later that day, U.S. President Donald Trump responded on Truth Social, saying:

    “Ending Elon Musk’s federal support would save billions and billions.”

    175044547079489

    The Tesla stock dropped over 17% after Trump’s remarks. The decline wiped out around $100 billion in Tesla’s market value. The fallout between Trump and Musk spilled into the crypto market, dragging sentiment lower.

    175044547070204

    The crypto market crash followed soon after the Tesla selloff. Traders began exiting positions, likely reacting to possible liquidity concerns linked to Musk’s companies. Bitcoin price dropped alongside Ethereum and XRP as the broader market reacted to the Trump Musk crypto dispute.

    Crypto Whales Dump BTC, ETH, XRP, SHIB to Coinbase

    During the same day, on-chain tracker Whale Alert reported a series of large sell transactions. One whale sent 917 BTC, worth $94.3 million, to Coinbase Institutional. Another wallet transferred 26.67 million XRP to the same exchange. Crypto whales dump their assets to exchanges when they prepare to sell. The timing of these moves matched the period of increased liquidations and falling prices. XRP whale selloff activity added pressure during the crypto market crash. Alongside Bitcoin and XRP, whales also offloaded meme tokens. Whale Alert tracked a transaction involving 2.86 trillion SHIB tokens moved to Coinbase. The amount suggests a coordinated move to sell during the ongoing Ethereum liquidation and Bitcoin price drop.

    175044547026401

    The pattern of wallet-to-exchange transfers during heightened volatility signals risk reduction among large holders. The crypto market crash, combined with ongoing political tension and macroeconomic uncertainty, pushed traders and whales to act quickly.

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