In early June 2025, a public conflict erupted between Elon Musk and Donald Trump, which caused a stormy reaction in the financial markets and hit cryptocurrencies on the Binance exchange particularly hard.
🔥 Reasons for the conflict
Elon Musk sharply criticized the tax and budget bill proposed by Trump, calling it 'disgusting' and harmful to the economy. In response, Trump accused Musk of protecting his own interests related to electric vehicle subsidies and threatened to terminate all government contracts with his companies, including Tesla and SpaceX.
The conflict escalated when Musk accused Trump of ties to Jeffrey Epstein and supported calls for the president's impeachment. Trump, in turn, called Musk 'crazy' and stated that he 'has just lost his mind.'
📉 Impact on the cryptocurrency market
This political scandal caused panic among investors:
Bitcoin fell to $100,372, marking its lowest level in recent months.
Ethereum lost about 6% of its value, while Dogecoin, Musk's favorite cryptocurrency, fell by 7%.
The total volume of liquidations in the market exceeded $980 million, most of which were long positions.
On Binance, investors were mass withdrawing funds, fearing further declines. Tokens related to political figures were particularly affected: $TRUMP lost 12% of its value, while Dogecoin dropped 6% in a day.
🧨 Consequences for companies
The conflict led to significant financial losses for both parties:
Tesla lost $152 billion in market capitalization, and Musk's personal fortune decreased by $8.73 billion.
Trump Media & Technology Group fell by 8%, and the cryptocurrency $TRUMP collapsed by 12%, leading to losses of over $1 billion for Trump.
📌 Conclusion
The conflict between Elon Musk and Donald Trump demonstrated how political disagreements can impact financial markets and cryptocurrency. Investors should take political risks into account when making investment decisions, especially in conditions of high volatility. #TrumpVsMusk
