The clash between former US President Donald Trump and Elon Musk triggered a wave of negative reactions in the cryptocurrency market, leading to significant sell-offs.
Market Sell-off Due to Conflict
The public confrontation between Donald Trump and Elon Musk catalyzed market panic, resulting in nearly $1 billion in liquidations. The majority of the lost funds consisted of liquidations of long positions. Bybit emerged as the hardest-hit exchange with $354 million liquidated.
Shift Towards Ethereum Interest
Amidst the sell-off, there was significant rotation of interest from Bitcoin to Ethereum, as evidenced by a 4,340 ETH purchase. This activity confirms a growing interest among institutional investors towards Ethereum in light of increased market volatility.
Financial Implications and Ethereum Upgrades
The financial implications are such that SharpLink Gaming allocated $425 million towards Ethereum. This indicates a potential shift in institutional interests towards Ethereum due to network improvements, such as the Pectra upgrade. "The Pectra upgrade, which went live on May 7, has been a key turning point, enhancing staking efficiency and Layer-2 scalability," noted Youwei Yang, Chief Economist of BIT Mining.
The Trump-Musk conflict highlights not only market volatility but also a sustained interest in Ethereum, which may change trading dynamics.
