The recent drop in Bitcoin's price is linked to the escalating political conflicts between Elon Musk and Donald Trump. CryptoQuant analyst Ki Young Ju emphasizes the significance of current events that affect the market.
Bitcoin Slumps Due to Political Instability
Bitcoin's price fell after Musk publicly criticized Trump's 'Big Beautiful Bill.' Currently, Bitcoin is trading at approximately $106,827, down 0.91% from the previous day. Traders are looking at $106,100 as a key support level.
Musk vs. Trump: Market Impact
The conflict between Musk and Trump reignited over the weekend after Trump faced criticism for the spending bill, while Musk called it fiscally irresponsible. In response, Trump threatened to reevaluate government subsidies for Musk's companies. Musk hinted at launching a new political party, with over 80% of respondents supporting the idea. This created additional pressure on markets.
Monitoring Volatility: What to Expect from Bitcoin?
Analysts note that the current political environment significantly increases risk to the cryptocurrency market. If Bitcoin's price falls below $106,100 with volume confirmation, it could test the $104,000 level, which previously served as support.
The decline in Bitcoin’s price amid political events indicates that the cryptocurrency market remains vulnerable to external influences. The next few days will be crucial for Bitcoin, especially given the amount of margin financing expiring in September.
