The Feud Between Donald Trump and Elon Musk Shakes Crypto Markets
Trump vs Musk: Bitcoin Wavers Below $101,000
The public clash between Donald Trump and Elon Musk sent shockwaves through the markets on Thursday evening. What began as a political disagreement over the latest Republican tax plan escalated into a public feud, with immediate repercussions on the crypto sector.
The fall was steep. As tensions mounted between the White House and the Tesla CEO, Bitcoin dropped by over 4%, briefly falling below $101,000 and threatening to dip into five-digit territory for the first time in a month.
Altcoins also took a hit: Solana (SOL) and SUI plummeted by over 7%, posting the worst performances of the day. Panic extended to crypto-related stock markets, with Coinbase down by 4.6% and MicroStrategy (MSTR) falling by 2.4%. Mining stocks like Marathon (MARA), Riot Platforms (RIOT), and Core Scientific (CORZ) each dropped by around 5%.
Threatened Contracts, Explosive Accusations
The breaking point came when Donald Trump, visibly irritated by Musk’s criticism of his tax plan named “One Big Beautiful Bill,” publicly called the billionaire “crazy” and threatened to terminate federal contracts awarded to companies led by him, including SpaceX and Tesla.
Elon Musk swiftly fired back: in a series of viral posts, he claimed that Trump was implicated in Jeffrey Epstein-related records, announced that SpaceX would remove its Dragon capsule from active service, and supported a call to impeach Trump in favor of his vice president J.D. Vance.
Tesla Crumbles, Defiance Sets In
The shock was also felt in the stock market. Tesla plummeted by over 14% following statements from its CEO. This steep decline, the most severe since 2020, reflects investors’ loss of confidence due to the open warfare between the two most polarizing figures in American politics and technology.
Later in the night, Bitcoin recovered, surpassing $103,000 again on Friday morning.
At a time when the correlation between tech assets and cryptocurrencies remains strong, the markets remain on edge for the next round of tweets or political retaliations.
