The exchange of words between US President Donald Trump and billionaire Elon Musk intensified pressure on the first cryptocurrency. The price of Bitcoin fell nearly 3%, approaching $100,000.
On May 5, Musk criticized Trump's tariff plans, provoking a conflict.
He stated that the president's initiative 'will trigger a recession in the second half of this year.'
Trump threatened to cancel Musk's government contracts on Truth Social. This would save the budget 'billions of dollars,' he stated.
Musk responded with a message about the decommissioning of SpaceX's Dragon spacecraft. Later, he retracted that statement.
At the time of writing, Tesla shares under the ticker TSLA are trading at $284.7, having decreased by 14.26% in one day, according to Google Finance.
Due to the conflict between some of the most influential people in the US, Bitcoin dropped from $105,915 to $100,500.
The decline led to liquidations of long positions in Bitcoin totaling $341.75 million in one day, according to Coinglass.
The quarrel between Trump and Musk also caused a 4% drop in the market capitalization of digital assets.
Other cryptocurrencies also demonstrated a downturn. Ethereum lost 5.6%, XRP - 2.8%, Solana - 3.2%.
The Fear and Greed Index has dropped to 45 points, which corresponds to the fear zone.
Recall that on May 23, the price of the first cryptocurrency lost more than 3% in an hour after Trump's threats to impose a 50% tariff on products from the EU.