The cryptocurrency market experienced a significant downturn recently, triggered by escalating tensions between Elon Musk and U.S. President Donald Trump, crypto liquidations, and large-scale whale offloadings. Total market capitalization fell 3.03% to $3.2 trillion in response. Bitcoin dropped to $101,928.79, Ethereum tumbled by 3.73%, reaching $2,489, and XRP also suffered a 3.34% decline to $2.13. All three prominent cryptocurrencies are currently testing key support levels, leaving the door open for further market fluctuations. Major factors contributing to this crash include: 1. Crypto Liquidations of Over $595 Million: Trading platforms experienced over $595 million in liquidations over the past 24 hours, affecting more than 156,000 traders. These losses primarily affected Bitcoin and Ethereum (collectively accounting for over $314 million), followed by Solana, Dogecoin, and XRP at around $40 million, $22.52 million, and $16.6 million, respectively. 2. Elon Musk vs. Donald Trump: The feud between these prominent figures in the tech and political spheres has intensified, leading to market volatility. The clashing views on economic policies directly impacted investor sentiment in crypto markets, resulting in a significant decline. 3. Whale Activity: Large cryptocurrency whales have recently been seen selling off substantial amounts of assets, including Bitcoin (917 BTC), Ethereum (26.67 million XRP), and Shiba Inu (2.86 trillion SHIB). These transactions could be contributing to the market downturn as it indicates a bearish trend in the crypto world. The U.S. Federal Reserve’s decision not to cut interest rates offers further context for these actions, potentially exacerbating investor risk-aversion and leading to continued market uncertainty.