The crypto market is undergoing a significant shake-up as tensions between US President Donald Trump and Tesla CEO Elon Musk escalate into a public feud. In the past 24 hours, the total liquidation amount has surged to nearly 1 billion USD, while the total market capitalization has also plummeted, with 7 of the top 10 cryptocurrencies recording significant declines.
The Trump – Musk verbal feud: The spark that shook the crypto market
The confrontation between Trump and Musk officially erupted as the tech billionaire bluntly attacked the government's new tax and spending bill – a policy move closely associated with Trump's name. On platform X, Musk vehemently condemned:
"This gigantic, absurd spending bill filled with 'special interest' provisions is an unacceptable insult. It is shameful for those who raised their hands in approval – you know you did wrong."
Tensions quickly escalated as Trump did not hesitate to respond. The President dismissed all criticism and personal attacks, accusing Musk of having 'Trump Disorder Syndrome' – a sarcastic term he once used against his opponents. At the same time, Trump threatened to withdraw all subsidies and government contracts for Musk's business ecosystem, including Tesla and SpaceX.
The war of words is not just limited to speech. When widely disseminated on social media, especially on platform X – where both have huge influence – the dispute quickly became a volatile political and financial variable, causing a ripple effect on the cryptocurrency market.
Amidst the wave of instability, investors are becoming more cautious than ever. According to Bitcoin Magazine, the total cryptocurrency market capitalization has dropped by 5.1% in just 24 hours – a figure that indicates the high level of anxiety among financial circles.
7 out of the top 10 cryptocurrencies are drowning in the red. Dogecoin (DOGE) – Musk's 'pet' coin – lost the most value at -6.9%, followed by Ethereum (ETH) down 5.5%, while Bitcoin (BTC) lost 1.1%, falling below 104,000 USD. Even Official Trump (TRUMP) – the meme coin representing the President – is not exempt from losses, plummeting by 10%.
Source: Coinmarketcap
Nearly 1 billion USD 'liquidated': A liquidation wave sweeps through
The price drop has triggered one of the largest liquidation waves since the beginning of the year. According to data from Coinglass:
The total liquidation amount reached 980 million USD in the past 24 hours.
More than 220,000 traders have been 'liquidated'.
Bitcoin recorded 308.1 million USD in Long liquidations and 33.8 million USD in Short liquidations.
Ethereum was also heavily affected, with 260.1 million USD in Long positions liquidated.
Notably, over 80% of the liquidated amount comes from Long positions, indicating that most investors bet on the upward trend – and were caught off guard by the market in the blink of an eye. Market sentiment is in an extremely uneasy and defensive state.
Source: Coinglass
Not only retail investors, even institutional investors – often seen as a stable support – are beginning to turn back. The Coinbase Prime Index, which reflects the trend of US institutional investors, has just shifted into negative territory.
"This index is sending out pessimistic signals. Whales and large institutions have clearly begun to withdraw from the market," one analyst commented. "This is the first signal indicating that something is truly changing after weeks of sideways market movement."
Source: CryptoQuant
Is the market being manipulated? Or is it just random?
At the same time, a bold hypothesis began to spread across cryptocurrency forums: Is the conflict between Trump and Musk actually a staged drama?
"This is not a real conflict. This is a power play to manipulate the market," a follower commented. "It's crazy to think that two such powerful individuals could accidentally cause billions in damage without any calculation."
Although there is no solid evidence, when two individuals wielding extensive influence over both global politics and finance 'clash', every move is worth questioning.
Besides the chaotic short-term fluctuations, the public rift between Trump and Musk is raising a series of concerns about long-term economic impacts, especially on the crypto market.
Musk recently publicly warned about the possibility of the United States falling into recession in the second half of 2025, which he attributes to Trump's hardline tariff policies.
"Trump's tariffs will cause a recession in the second half of this year," Musk posted on X.
This forecast is consistent with the general concerns of the market, as Trump's recently proposed trade measures have contributed to increasing economic instability since the beginning of the year. In this context, many observers suggest that Bitcoin could emerge as a 'safe haven' amid the waves of policy instability.
Some even go further, claiming that the breakdown between these two powerful figures could be a potential catalyst for the next Bitcoin boom.
"The collapse in the relationship between Elon Musk and Trump will usher in an unprecedented era of money printing. Bitcoin will explode. Be ready," a social media user wrote.
Kashif Raza, founder of Bitinning, also states that the dispute could create unexpected scenarios, including:
Trump cuts subsidies or imposes sanctions on Musk's companies;
Musk faces harassment in the US, possibly even being forced out of the domestic business environment;
Or Musk shifts to Bitcoin as a tool against government control.
Raza also believes that if Musk were to run for office, accepting donations in Bitcoin would also be a completely plausible scenario.
"No matter what scenario occurs, Bitcoin benefits. Its censorship-resistant feature is its core strength," Raza asserts.
What's next for Bitcoin's price?
Although Bitcoin remains above the psychological support level of 100,000 USD, famous trader Roman warns that the BTC/USD chart on higher time frames is showing "bearish signals everywhere."
"The collapse of BTC has begun! The immediate target is 95,000 USD, and possibly lower – depending on how the market reacts in the upcoming consolidation phase."
Trader Friedrich also agrees with the bearish scenario, describing the current drop as "unpleasant" and does not rule out the possibility that Bitcoin's price may break below 100,000 USD.
"We may witness a retest of the 105,000 USD level before plunging to 87,000 USD," Friedrich forecasts. "Or, if BTC recovers strongly and breaks the resistance level of 105,800 – 106,000 USD, the long-term uptrend may return and open the journey to conquer new heights."
1-day BTC/USD chart | Source: Friedrich/X
Even experts with a positive outlook on the market admit that bearish pressure is still clearly present. Kevin Svenson, an influential commentator in the crypto community, points out that Bitcoin's relative strength index (RSI) on the daily time frame is still in a downward trend.
"The daily RSI structure is an important technical indicator to watch. Currently, there are still no signs of a reversal; we may have to wait another week to see clearer recovery signals."
Meanwhile, some observers suggest that the upcoming macroeconomic data to be released in the US – particularly the non-farm payroll (NFP) report – will be a crucial catalyst for the next volatility of risky assets, including Bitcoin.
Keith Alan, co-founder of Material Indicators, notes that:
"The NFP report and unemployment rate will act as 'the trigger' for market volatility. If the unemployment rate rises above expectations, it could force the Federal Reserve (FED) to consider easing monetary policy sooner."
According to Alan, the market is caught between expectations of a strong economy and the possibility of interest rate cuts in Q3. While he does not assert with certainty, he does not rule out the possibility that Bitcoin could fall to a low of 93,000 USD if economic data does not provide clear support.
1-day BTC/USD chart | Source: Keith Alan/X
Whether the rift between Elon Musk and Donald Trump is essentially a conflict of opinions or a deliberate political ploy, its impact on the crypto market is undeniable. When two of the most influential figures in technology and finance publicly confront each other, market turbulence is inevitable.
While it is still too early to assert that Bitcoin will be the "big beneficiary" from the Trump – Musk tensions, one thing is clear: this fractured relationship has changed the landscape of the market. Signs of instability are casting a shadow over the entire cryptocurrency ecosystem – which is already sensitive to news and crowd psychology.
However, amidst increasing instability in policies, economics, and global geopolitics, Bitcoin is increasingly showing its role as a strategic defensive tool. With its decentralized nature, ability to resist censorship, and independence from traditional financial systems, Bitcoin could become a support for investors seeking independence and safety amid unpredictable fluctuations.
https://tapchibitcoin.io/bitcoin-co-the-giu-vung-100k-giua-drama-trump-musk.html
