Bitcoin (BTC) dropped 3% on Thursday, wiping out over $84 billion in market value. This decline is driven mainly by long-term holders selling to take profits, alongside rising macroeconomic worries fueled by a public clash between President Donald Trump and Elon Musk over the “One Big Beautiful Bill Act.”
Long-term holders have been selling heavily, with realized profits reaching $1.47 billion daily last week, according to Glassnode. This level of profit-taking often signals that a bull market may be losing steam. Meanwhile, short-term holders’ profit-taking remains much lower at $320 million daily.
The political dispute added pressure on Bitcoin’s price. Musk criticized the bill for potentially bankrupting the US economy and increasing the deficit by $2.4 trillion over 10 years.
He also warned that tariffs linked to Trump’s policies could cause a recession later this year. Trump fired back on Truth Social, accusing Musk of anger over cuts to electric vehicle tax credits and removing mandates favoring Musk’s interests.
This tension contributed to Bitcoin falling below the key $103,000 support level. The cryptocurrency briefly found support near its 50-day moving average but remains down 3% at around $101,800. The sell-off triggered $337 million in futures liquidations, mostly hitting long traders.
If selling continues, Bitcoin could drop further to $92,500, near its 100-day moving average, which may act as stronger support. However, a break below that level could lead to a deeper correction. The Stochastic Oscillator shows Bitcoin is oversold, suggesting bearish momentum but also a chance for a rebound.
In summary, Bitcoin faces short-term pressure from profit-taking by long-term investors and heightened uncertainty from political and economic developments. The market will closely watch if BTC can hold above $103,000 to avoid a sharper decline.
