Why the Trump–Musk Feud Is Sending Shockwaves Through Crypto: Bitcoin and Top Tokens Dive, Tesla Reels
Crypto prices nosedive as Trump and Musk’s public battle escalates; Bitcoin teeters near five digits, Tesla plunges 14% in a single day.
- Bitcoin sinks 4%+, trading around $100,500—its lowest in a month
- CoinDesk 20 index drops over 5% in hours, led by double-digit slides in some major tokens
- Tesla shares tumble 14% amid Musk–Trump feud and crypto contagion
- Circle IPO surges to $100, closes at $83, sparking market volatility
The crypto world is awash in red as two of its biggest catalysts—Elon Musk and Donald Trump—ignite a high-stakes showdown that has triggered heavy selling across both digital and traditional markets.
What Sparked the Crypto Crash Today?
The sell-off was already brewing when U.S. President Donald Trump and Tesla CEO Elon Musk escalated their public spat over the so-called “Big, Beautiful Bill” and ballooning U.S. national debt. As the feud intensified Thursday afternoon, President Trump went so far as to question Musk’s mental stability and hinted at withdrawing all federal contracts from Musk’s companies.
Musk wouldn’t stay silent, suggesting Trump was connected to the Epstein files. He also signaled potential changes at his SpaceX division—fueling uncertainty and investor anxiety.
Which Cryptos and Stocks Were Hit Hardest?
Bitcoin, the undisputed heavyweight of the crypto world, lost more than 4%, flirting dangerously close to breaking back into the five-digit price range for the first time in a month. Ethereum and Solana (SOL) didn’t fare much better. SOL and SUI led declines with losses above 7%, making them some of the market’s worst performers.
Traditional crypto stocks were not spared. Coinbase (COIN) tumbled 4.6%, while Michael Saylor’s Strategy (MSTR) fell 2.4% on the day. Crypto mining giants like MARA Holdings, Riot Platforms, and Core Scientific all logged 5% losses.
Traditional tech was rattled too. Tesla (TSLA) stock cratered by 14% in a single afternoon—a testament to the ripple effect of Musk’s involvement in the controversy.
For more up-to-date market analysis, visit CoinDesk or CNBC.
Is the Circle IPO a Repeat of Coinbase’s Crypto Top?
Amid all the chaos, stablecoin issuer Circle (CRCL) made its trading debut, rekindling memories of Coinbase’s explosive—and ill-timed—2021 IPO. Circle shot up from its $31 opening to over $100 before closing at $83, thrilling some investors but stoking fears of a historic market top.
Veteran traders recall that Coinbase’s debut marked a major peak for cryptos, and the Circle IPO arrives with similar fanfare—and concern that the sector may be due for a cooldown.
Check out more on major crypto moves at Binance.
Q&A: What Are Traders Watching Next?
Q: How have macro events impacted crypto prices?
Global headlines—especially involving figures like Trump and Musk—whiplash markets and add volatility. Political tension, especially when it threatens tech juggernauts and their federal contracts, quickly ripples through investor sentiment.
Q: Are more declines expected?
Analysts predict continued turbulence. With Bitcoin teetering just above $100,000, a break below this level could trigger even sharper sell-offs as stop-losses are hit and margin calls mount.
How to Protect Yourself in This Volatile Crypto Climate
– Set stop-losses on all volatile assets
– Stay informed via trusted financial news sources like Bloomberg
– Diversify away from highly correlated assets
– Avoid emotional trading in the wake of celebrity drama or political events
Stay alert and take control:
- ✔️ Review your crypto and tech holdings
- ✔️ Use stop-loss orders to limit downside
- ✔️ Follow major news outlets for breaking developments
- ✔️ Be cautious around IPO-fueled market euphoria
- ✔️ Diversify across asset classes to manage risk
Don’t get caught off-guard—act now to safeguard your investments as the Trump-Musk feud sends fresh tremors through crypto and tech!
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