#TrumpVsMusk The recent decline in Bitcoin's price can be attributed to the escalating public feud between Elon Musk and President Donald Trump, which has unsettled investor sentiment in the cryptocurrency market.

Key Factors Behind Bitcoin's Decline

1. Political Tensions and Market Uncertainty: The dispute between Musk and Trump over the "One Big Beautiful Bill"—a legislative package involving tax reforms and increased government spending—has raised concerns about economic stability. Musk criticized the bill for potentially increasing the U.S. deficit by $2.4 trillion, while Trump defended it as a means to stimulate growth. This clash has introduced uncertainty into the markets, prompting investors to adopt a risk-averse stance.

2. Market Liquidations: The heightened volatility led to significant liquidations in the crypto market. Approximately $308 million in Bitcoin long positions were liquidated within 24 hours, as the price briefly dipped below $101,000. This wave of liquidations further pressured prices downward.

3. Broader Market Impact: The feud also affected traditional markets. Tesla's stock plummeted by 14%, erasing about $150 billion in market capitalization, while Trump Media & Technology Group's shares fell by over 8%. These declines reflect the broader market's sensitivity to political disputes involving major economic figures.

4. Investor Sentiment: The public nature of the Musk-Trump conflict, including personal allegations and threats to business operations, has eroded investor confidence. Musk's threats to decommission SpaceX's Dragon spacecraft and Trump's suggestions of terminating federal contracts with Musk's companies have added to the market's unease.