- The crypto market dropped $82 billion to $3.16 trillion amid heightened investor anxiety fueled by an escalating feud between Elon Musk and Donald Trump.
- Bitcoin is holding above $102,000 while altcoin Lido DAO plunged over 13%, reflecting broader market weakness.
The cryptocurrency market faced a sharp downturn on Thursday, shedding $82 billion in total market capitalization to rest at $3.16 trillion. The sell-off, triggered in part by a public feud between Elon Musk and former President Donald Trump, has raised fears of a broader correction. The market now teeters on the edge of deeper losses, with projections suggesting a possible drop to $3.09 trillion if bearish momentum persists.
Elon vs. Trump: Ripple Effects Across the Market
The feud between Musk and Trump, which sent shockwaves through social media and traditional markets, has rattled investor confidence. Tesla stock plunged 14%, amplifying panic in the crypto sector, which often mirrors tech sentiment. The reaction was swift: traders pulled out capital, fueling a widespread sell-off.
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Despite the turmoil, some analysts believe the market may be overreacting. If calm returns and buyers step back in, a rebound to $3.21 trillion in market cap could mark a turning point. Until then, the market remains under pressure, reflecting a mix of political tension and investor uncertainty.
Bitcoin Fights to Hold Above $102K
Bitcoin (BTC), the market’s bellwether, followed the broader dip, briefly nearing the psychological $100,000 mark. Currently trading at $102,633, BTC is struggling to reclaim its footing. A successful break above $102,734 could see it push toward $105,000, offering a glimmer of hope to bullish investors.
However, failure to breach that level might invite renewed selling pressure, dragging BTC back to $100,000. Such a drop would invalidate near-term bullish outlooks and could spur additional declines.
Lido DAO (LDO) Crashes 13% Amid Market Turmoil
Among the hardest-hit altcoins, Lido DAO (LDO) tumbled 13.45% to $0.76, marking one of its steepest daily declines this month. The token’s vulnerability highlights the fragility of altcoins during periods of market stress.
Should LDO fall below $0.76, the next key support lies near $0.69. On the flip side, reclaiming $0.77 as support could initiate a recovery toward $0.89, potentially reversing the bearish trend.
As volatility continues, investors remain cautious, eyeing key resistance and support levels for signs of stabilization.