Storm in the Crypto Market: When Trump and Musk Clash
Recently, the crypto market has been rocked by news of significant price drops. Bitcoin, Ethereum, and Dogecoin have all been dragged down. However, behind the usual price fluctuations, there is a much bigger "drama": the feud between Donald Trump and Elon Musk.
Yes, the two most influential figures in the world — one a former president of the United States with a strong mass base, the other a visionary innovator behind Tesla and SpaceX who is also a crypto influencer — are in conflict. And believe me, the effects are felt even in our digital wallets.
What Is the Root of the Problem?
This conflict centers on one thing: the "One Big Beautiful Bill Act" (OBBBA). This is a major spending and tax bill fully supported by Donald Trump.
Elon Musk openly rejected OBBBA. He called it an "abominable monstrosity" and even the "Debt Slavery Bill." Musk is concerned that this bill will exacerbate the already swollen US deficit.
This disagreement peaked when Elon Musk decided to leave Trump's administration, particularly from the Department of Government Efficiency (DOGE) that he had briefly led.
War of Words on the Public Stage
After Musk's decision, the drama continued in public.
Trump expressed "great disappointment" with Musk, accusing him of opposing the bill only because of cuts to electric vehicle incentives. Trump even threatened to cancel government contracts with Musk's companies.
Musk did not remain silent. He responded by saying that Trump would not win the 2024 election without his support. He also called Trump's claim about his knowledge of the bill "false." The war of words heated up, causing significant uncertainty.
Significant Impact on the Crypto Market
So, what does all this have to do with the drastic decline in the crypto market?
* "Risk-Off" Sentiment: When these two major figures clash, market sentiment shifts to "risk-off." Investors tend to pull back from high-risk assets like crypto, seeking safer assets.
* Mass Price Drop: Bitcoin briefly fell below $101,000, Ethereum to $2,420. Even Dogecoin, which is often closely associated with Elon Musk, dropped around 10% in one day. This demonstrates the significant influence Musk has on certain digital assets.
* Mass Liquidation: This price drop triggered nearly $1 billion in liquidations in the crypto futures market, with the majority (90%) being long positions (investors betting on prices rising). This is certainly a blow to many traders.
* Unquestionable Influence of Elon Musk: Historically, Musk's tweets and statements have had an extraordinary impact (or appeal) on crypto prices. When he clashes with someone of Trump's caliber, the shift in political relationships and his public criticisms lead to substantial market volatility.
Trump's Shift in Stance: From Skeptical to Pro-Crypto?
Despite this conflict causing a storm in the crypto market, there is one interesting thing to note: Donald Trump has recently shown a significant shift towards a more pro-crypto stance.
In the past, he was known to be skeptical of digital assets. However, he has now:
* Promised to make the US the "crypto capital of the planet" if re-elected.
* Issued an Executive Order to support the growth of the US crypto industry.
* Strongly opposing US central bank digital currencies (CBDCs), which many crypto investors see as a positive step.
However, his personal conflict with Elon Musk, which is more rooted in government spending policies than views on crypto, seems to temporarily overshadow Trump's pro-crypto stance.
So, amidst the turmoil in the crypto market, we are reminded once again that political dynamics and interpersonal relationships have a huge impact. Will Trump and Musk reconcile? And what will happen to the crypto market after this storm? Only time will tell.
What do you think about this conflict? Share your views in the comments section!
