Political Earthquake Triggers $324M Bitcoin Futures Bloodbath
Market carnage hits crypto derivatives as traders get steamrolled by volatility. Liquidations spike to nine figures—because nothing says 'hedge' like getting margin-called into oblivion.
Who needs economic fundamentals when you've got geopolitical chaos fueling the casino? The house always wins—especially when the players are overleveraged degens.
Political Tensions Spark Volatility And Liquidations
Bitcoin stands at a pivotal moment as it hovers below its all-time high of $112,000. The broader market is watching closely, anticipating either a breakout into price discovery or a deeper retracement if momentum fades. Bulls maintain control above the $100,000 level, but the recent surge in volatility has highlighted growing risks. Macroeconomic headwinds—particularly rising US Treasury yields and global uncertainty—have kept markets on edge. Now, political friction is adding fuel to the fire.
The latest source of instability came from an explosive clash between Elon Musk and US President Donald Trump. Their public disagreement over the controversial “Big Beautiful Bill,” criticized by Musk on X, spooked investors across the board. According to top analyst Axel Adler, this conflict triggered one of the sharpest reactions in the crypto derivatives market this year. Bitcoin futures saw over $324 million in long-position liquidations within hours, marking a significant shift in short-term sentiment.
If Bitcoin fails to reclaim momentum above the $110K region, traders may begin eyeing downside targets. Adler points to $97,500 as the nearest support level, aligning with the Short-Term Holder (STH) Realized Price. A drop below that level could accelerate the decline and shift momentum in favor of bears. However, if BTC holds its current ground and sentiment recovers, the foundations remain intact for a strong continuation into new highs.
Bitcoin Holds Key Support As Bulls Defend $103,600 Level
Bitcoin is showing resilience after a sharp retrace from the $112K all-time high, bouncing off the $103,600 support level, marked by strong historical relevance and alignment with the 34-day EMA. As seen in the chart, BTC tapped this zone with a low of $101,159 before quickly reclaiming higher ground, currently trading NEAR $103,743.
The bounce has formed a potential higher low within the broader uptrend, signaling that bulls are not yet giving up control. However, the failed breakout above $109,300 highlights resistance pressure, and BTC needs to decisively flip that level into support to confirm a bullish continuation.
Volume on the latest candle suggests buyers are stepping in, but the lack of a strong surge indicates market caution. The 50-day SMA (green) remains upward sloping, offering medium-term support, while the 100-day and 200-day SMAs are still trending below, reinforcing the bullish bias unless the price drops below $100K.
For now, $103,600 is the level to watch. A breakdown below that could open the door to further declines toward the $98K-$100K range. A sustained push above $106K, on the other hand, WOULD likely invite bullish momentum and retest the $109K barrier.
Featured image from Dall-E, chart from TradingView
