Trump vs Musk- Bitcoin and Tesla Tumble After Political Clash
Trump vs Musk– The cryptocurrency market faced steep declines this week following an intense public dispute between former U.S. President Donald Trump and Tesla CEO Elon Musk. The clash began when Musk criticized Trump’s proposed legislation—dubbed the “One Big Beautiful Bill.” Trump retaliated by threatening to cancel federal contracts with Musk’s companies, including Tesla and SpaceX.
Musk responded on X with a series of sharp posts, accusing Trump of authoritarian behavior and labeling the bill a “corporate straitjacket.” The high-profile exchange sent jitters through the financial world, pushing investors toward safer assets amid rising uncertainty.
Major cryptocurrencies tumbled in the wake of the feud. Bitcoin slipped 1.86% to $102,836, while Ethereum saw a sharper drop of 6.18%, landing at $2,455.68. Dogecoin, which often tracks Musk-related sentiment, fell more than 7% to $0.175.
Trump-backed “Trump Coin” also took a hit, losing 12% of its value, highlighting the market’s sensitivity to political tensions.
$1B in Crypto Derivatives Liquidated
The volatility triggered widespread liquidations, wiping out nearly $1 billion in crypto derivatives. Market data shows that over $800 million in long positions were closed in rapid succession, with exchanges such as Binance and OKX reporting unusually high activity.
JP Morgan analysts noted that the market reaction resembled patterns seen during geopolitical crises, underlining the unpredictable nature of markets influenced by dominant public figures.
“This feud is more than just a media spectacle—it’s a signal of the unpredictable intersection of politics, tech, and finance,” said Lisa Conrad, senior strategist at Chainview Analytics.
With no signs of de-escalation, investors are preparing for continued volatility driven by powerful personalities rather than traditional market fundamentals.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
