- Tesla’s 17% drop and Musk-Trump tensions led to $983M in crypto liquidations, hitting Bitcoin and Ethereum hardest.
- Whale moves of 2,500 BTC and 80,000 ETH to exchanges fueled market sell-offs and over $150M in Binance long liquidations.
- Despite turmoil, Bitcoin and Ethereum ETFs saw inflows, showing institutional resilience amid short-term volatility.
The crypto market faced intense pressure following a public fallout between Elon Musk and Donald Trump, leading to widespread sell-offs and liquidations. As the exchange between the Tesla CEO and the former president escalated online, investor confidence dropped sharply across both equity and digital asset markets.
Tesla shares fell by nearly 17%, dragging down broader sentiment and forcing large-scale crypto liquidations. According to Coinglass, Bitcoin lost over 3% in 24 hours while Ethereum plunged more than 7%, causing total trader liquidations to top $983 million — with long positions accounting for $892 million.
Whale Deposits Spark Sell-Off and Derivatives Activity
Whale activity played a role in increasing the market volatility. Over 2,500 BTC moved into Binance’s spot exchange, indicating high-volume sell interest. Soon after, approximately 80,000 ETH flowed into derivatives platforms.
These deposits increased market supply and triggered waves of short positions in futures markets. This shift contributed to increased liquidation pressure, especially as open interest reset on major exchanges. Binance alone recorded more than $150 million in long liquidations for BTC and ETH combined.
Whale Screener data further confirmed that whales transferred around $600 million worth of assets to centralized exchanges ahead of the price downturn. This movement closely preceded the broader correction across digital assets and stocks. Tesla’s sharp decline helped intensify the crypto pullback as the markets reacted to the political tensions.
Option Expiry Data Indicates Institutional Caution
Meanwhile, June 6 options data showed ongoing institutional uncertainty. According to Greeks.live, 31,000 BTC options expired with a Put Call Ratio of 0.71 and Maxpain of $105,000. For Ethereum, 241,000 contracts expired with a Put Call Ratio of 0.63 and Maxpain at $2,575.
The notional values are at $3.18 billion for BTC and $590 million for ETH. Analysts observed increased market activity but noted that most institutions held modest expectations for a short-term rally. Trading volume rebounded after several weeks of decline, but order flows remained cautious.
This shift in derivatives sentiment came amid broader weakness in U.S. equities and crypto markets. Market uncertainty intensified following the Musk-Trump exchange, which helped lead to a multi-asset risk-off move.
ETF Inflows Continue Despite Volatility
Despite the volatility, institutional inflows into crypto ETFs remained strong. According to Lookonchain, Bitcoin ETFs recorded a net inflow of 1,031 BTC, worth over $109 million. BlackRock’s iShares led inflows with 2,704 BTC.
Now, it holds 662,841 BTC worth $70.12 billion. Ethereum ETFs also saw net inflows of 22,029 ETH, totaling $57.91 million. iShares again led, adding 27,846 ETH and bringing its holdings to 1.49 million ETH valued at $3.93 billion.
These steady ETF inflows indicated institutional resilience even as whales shifted assets toward exchanges. The data also pointed to continued accumulation strategies by asset managers.
The exchange between Musk and Trump led to a significant market response across both equities and crypto assets. Whale transfers of 2,500 BTC and 80,000 ETH to exchanges added pressure as sentiment collapsed.
Large-scale liquidations on Binance and cautious institutional behavior in options showed a risk-off environment. However, ongoing ETF inflows suggested underlying demand remained steady despite the sharp market retrace.
