Trump–Musk Feud Jolts Crypto Markets as Bitcoin Slips, Investors Brace for Fallout
Tensions between President Donald Trump and Elon Musk sent tremors through crypto markets on Thursday, with Bitcoin (BTC) slipping below $101,000 amid heightened uncertainty and renewed risk aversion.
The public fallout — sparked by disagreements over government spending and Musk’s criticism of Trump’s policies — escalated into personal attacks, including Musk calling for the president’s impeachment and referencing Trump’s alleged links to the Epstein files. In response, Trump hinted at targeting Tesla and SpaceX’s federal contracts.
Markets reacted swiftly. The CoinDesk 20 Index dropped over 5%, with key altcoins like Solana (SOL) and Sui (SUI) plunging more than 7%. Shares of Coinbase (COIN) and MicroStrategy (MSTR) declined, while crypto mining firms and Tesla stock saw steep losses — TSLA fell over 14%.
Bitcoin, which had held above six figures for much of the week, dipped to $100,500, raising concerns of a broader pullback if political instability grows.
Adding to the day’s volatility, stablecoin issuer Circle (CRCL) made its NYSE debut, closing at $83 after opening at $31 — a performance reminiscent of Coinbase’s 2021 IPO, which preceded a major correction in crypto valuations.
With macro and political narratives converging, analysts warn that markets could remain fragile. “This isn’t just about crypto anymore,” one trader noted. “It’s about trust, leadership, and how much influence a single tweet can still have.”
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