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The crypto market slid sharply on Friday, June 6, shedding 5% over the past 24 hours as rising political tensions between President Donald Trump and Elon Musk sent investor confidence tumbling.\u00a0<\/p>\n
The total crypto market capitalization now stands at $3.29 trillion, down from around $4.1 trillion on June 5. According to data<\/a> from Alternative, the Crypto Fear & Greed Index dropped 12 points, from 57 to 45, marking a move into \u201cfear\u201d territory. This decline in sentiment follows a public clash between Trump and Musk that has also weighed heavily on traditional markets.<\/p>\n Bitcoin (BTC) is down 3.1% and trading at $101,843 at press time. Ethereum (ETH) leads the top 10 altcoin losses with a 7.5% slide, while Solana (SOL), XRP (XRP), and BNB (BNB) each slid about 5%. Nearly $986 million in cryptocurrency positions were liquidated in the last day, according to Coinglass data<\/a>, a 358% increase.<\/p>\n The crypto market relative strength index dropped to 32.7, indicating oversold conditions, and open interest dropped 2.71% to $140 billion.<\/p>\n The market reaction followed a series of political escalations. The fallout started when Musk resigned from the Department of Government Efficiency and publicly criticized the President\u2019s recent spending bill, dubbed the Big Beautiful Bill. <\/p>\n In response, Trump revoked Jared Isaacman\u2019s NASA nomination, a close associate of Musk, and threatened to completely cut off government contracts for businesses run by Musk.<\/p>\n <\/p>\n The feud intensified on June 5 after Musk accused Trump of being connected <\/a>to the Jeffrey Epstein files and supported calls for his impeachment. Trump, in turn, declared that Musk had \u201cgone crazy.\u201d As tensions rose, Tesla shares plunged more than 14%, and Musk announced SpaceX would begin decommissioning its Dragon spacecraft.<\/p>\n