Trump-Musk Clash Sparks Crypto Bloodbath

Was it necessary to believe in an alliance between Donald Trump and Elon Musk? The promise of a visionary duo quickly collapsed. Less than six months after their rapprochement, the two public figures are tearing each other apart. Their invectives are no longer limited to words: they have triggered a shockwave in the markets. Crypto and stocks have bled, taken hostage by an ego clash. The clash between these giants has cascaded down to investors.

Trump vs Musk: A summit duel shaking the stock market and crypto

Thursday, Elon Musk slammed Trump’s budget bill. In response, the president promised to cancel his public contracts. The result? An immediate shockwave in the markets. Tesla plunged 14.3%. SpaceX saw its projects questioned. Trump wrote on Truth Social:

The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts.

Musk replied on X:

SpaceX will begin decommissioning its Dragon spacecraft immediately

This duel immediately impacted crypto. The global market lost $124 billion in 24 hours. The crypto Fear & Greed sentiment index dropped from 61 to 46. Political tensions spread to digital assets and stocks. This ego war disrupts even the financial orbit.

Bitcoin shaken by political shocks

Bitcoin has not escaped the storm. In less than a day, it dropped from $105,915 to $100,500. At the time of publication, it stabilizes around $102,180, far from its recent highs. $308 million in long positions were liquidated. As often during times of tension, markets react sharply to political events: the clash between Trump and Musk triggered a wave of selling, intensifying the correction. Glassnode confirms selling pressure: many long-term holders are taking profits at highs.

The blockage of US monetary policies amplifies nervousness. Pav Hundal explains:

There is a risk that officials will wait for tangible data on tariff effects.

Result: no macroeconomic support, no recovery for Bitcoin. And the absence of a positive catalyst fuels fear. Traders hoped for a rebound above $111,800, but a correction has begun.

Bitcoin suffers from a trust void, fueled by political chaos. Even stablecoins are trembling, as if the foundations of crypto were shaking.

Elon Musk and Trump: is the divorce irreversible?

Is the make-shift union between Elon Musk and Trump definitively broken? Their digital war seems in any case to have crossed a point of no return. Musk denounces a political attack against his companies. He warns of a major space slowdown if Dragon is decommissioned.

Trump, on his part, mobilizes his Republican base. The OFFICIAL TRUMP memecoin dropped 9.75%, reflecting the tension. A call is planned between the two men, but the rift is deep. The GOP risks paying the political price of this internal war. The consequences go far beyond their personal quarrels.

Key figures to remember:

• 226,781 traders liquidated in 24 hours;
• $979.88 million in forced position closures;
• Drop of 5.20% for Solana, 7.25% for Ethereum, 4.35% for XRP;
• Crypto now represents 63.7% of digital market capitalization.

Every word exchanged between Trump and Elon Musk carries weight. Their war does more damage than any recent economic crisis.

When Donald Trump took office in January, Elon Musk’s wealth exploded. Six months later, the wind shifted. The richest man in the world and the most powerful politician on the planet are now facing off, and crypto is paying the price. Market confidence might not recover anytime soon.