Bybit Sees $354 Million in Liquidations Amid Trump-Musk Twitter Feud-Induced Crypto Selloff

Cryptocurrency markets experienced significant volatility following a public dispute between former President Donald Trump and Tesla CEO Elon Musk, which led to nearly $1 billion in Leveraged liquidations. Bitcoin briefly dropped below $101,000, marking a 4% decline, while Ethereum fell 7% to test $2,400 support levels. Bybit was notably impacted, with $354 million in positions liquidated during the selloff.

Trump-Musk Twitter Feud Sparks $1 Billion Crypto Market Selloff

Cryptocurrency markets faced significant turbulence as a public dispute between former President Donald Trump and Tesla CEO Elon Musk triggered nearly $1 billion in leveraged liquidations. Bitcoin briefly fell below $101,000, marking a 4% decline, while ethereum led the broader market downturn with a 7% drop to $2,400 support levels.

The selloff was particularly acute on Bybit, where $354 million in positions were liquidated—$342 million of which involved Bitcoin. Spot Bitcoin ETFs recorded $278 million in outflows as institutional investors retreated from risk assets. Altcoins suffered steeper losses, with Dogecoin falling 8% and other major tokens declining 4-6%.

The market reaction followed Musk''s criticism of a Congressional spending bill supported by Trump, prompting the former president to threaten retaliation against Musk''s companies. The confrontation highlights crypto markets'' growing sensitivity to macroeconomic policy debates and high-profile personality clashes.

Safe Launches Safe Labs to Enhance Security and Institutional Appeal After ByBit Hack

Safe, formerly known as Gnosis Safe, has established Safe Labs as its core development arm, marking a strategic shift following February''s $1.4 billion ByBit breach—the largest crypto theft on record. The new entity will operate under the Safe Foundation, consolidating previously outsourced technical work.

"We reject the false choice between security and convenience," said Safe Labs CEO Rahul Rumalla. The MOVE aligns with growing institutional demand for robust custody solutions amid what Rumalla describes as crypto''s ''cyber warfare'' era. The ByBit incident served as a catalyst for restructuring.