The cryptocurrency market is blood red, and the reason is not just due to technical numbers. A political-personal battle between two powerful figures – Donald Trump and Elon Musk – is shaking the entire financial market, especially crypto.
As of the end of the trading day in the U.S., Bitcoin had dropped more than 4%, down to $100,500, threatening to break the 5-digit mark for the first time in a month. But it's not just BTC taking the hit – the CoinDesk 20 index, representing the top 20 largest cryptocurrencies (excluding memecoins, stablecoins, and exchange tokens), also fell over 5%. Notably, SOL and SUI are the biggest 'victims' losing more than 7% of their value.
Crypto-related stocks are also being pulled into this vortex:
• Coinbase (COIN): Down 4.6%
• MicroStrategy (MSTR): Down 2.4%
• Cryptocurrency mining companies like MARA, RIOT, CORZ: Losing about 5% each
The spark of this battle is a new financial bill that Trump calls the 'Big, Beautiful Bill' – but Musk opposes it, believing it will inflate the U.S. national debt. Tensions escalated when Trump bluntly declared Musk had 'gone crazy' and threatened to terminate all government contracts with Musk's companies, including SpaceX.
Not backing down, Musk immediately fired back on social media: accusing Trump of being linked to Epstein's child sex abuse case, implying he would dismantle SpaceX's Dragon spacecraft fleet, and even supporting Trump's impeachment, with J.D. Vance as a replacement vice president. Tesla (TSLA) shares plummeted more than 14% in just one day.
Meanwhile, the crypto market is still struggling with selling pressure – not just because of political drama, but also due to an IPO event making investors more cautious than excited.
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