The public fallout between Elon Musk and Donald Trump has sent shockwaves through the financial markets, causing Tesla's stock to plummet 14% and dragging the crypto sector into a broad risk-off retreat. Musk's criticism of Trump's proposed tariffs, which could trigger a recession, has led to significant market fluctuations ¹.
*Key Developments:*
- *Bitcoin Price Drop*: Bitcoin's value dropped to $101,291.10 after Musk's comments, with a 24-hour high of $105,936.69.
- *Tesla's Stock Decline*: Tesla's stock closed 16% lower since Musk began attacking Trump's domestic policy bill.
- *Crypto Market Impact*: The broader crypto market fell nearly 5% during the same time, with the $TRUMP meme coin sliding 10%.
*Market Outlook:*
- *Uncertainty Ahead*: The feud between Musk and Trump has introduced fresh instability into an already volatile market.
- *Potential Consequences*: Trump's tariff policies could lead to sharp trade contractions and substantial welfare losses, particularly for the United States