The fallout
The fallout between Donald Trump and Elon Musk, once close allies, erupted earlier in June 2025 over disagreements on a government spending bill Trump called his “big, beautiful bill.” Musk publicly criticized it as a “disgusting abomination” due to its removal of electric vehicle tax credits and other provisions, sparking a bitter feud. Tensions escalated with public insults: Trump called Musk “the man who has lost his mind” and accused him of drug use, while Musk sparred with Trump’s allies, including Steve Bannon, and briefly threatened to decommission SpaceX’s Dragon spacecraft. The feud led to a 14.2% drop in Tesla shares, wiping billions from Musk’s net worth, and raised concerns about Musk’s federal contracts, particularly with SpaceX. Trump threatened to sell his Tesla stock and hinted at revoking Musk’s influence, while Musk backed posts calling for Trump’s impeachment. The split, described as a “spectacular blowout,” ended their unlikely partnership, with potential implications for U.S. industry and policy, given Musk’s role as a major government contractor.
Impact on crypto
The Trump-Musk fallout has significantly impacted the cryptocurrency market, primarily due to their public feud over a U.S. government spending bill in early June 2025. The conflict triggered a sharp market downturn, with a 5.1% drop in total cryptocurrency market capitalization, nearing $1 billion in liquidations. $BTC Bitcoin fell below $101,000, losing 5-10% of its value, and liquidated $308 million in long positions. Ethereum $ETH dropped 6%, while Trump’s $TRUMP coin lost $100 million in value. The clash, amplified by personal attacks and threats, created sentiment-driven volatility, particularly for assets tied to their brands, like political memecoins and $DOGE /X ecosystem tokens. Some X posts suggest long-term bullishness for Bitcoin, arguing the feud highlights U.S. government spending issues, increasing Bitcoin’s relevance. However, the immediate effect has been a risk-off environment, exposing crypto market vulnerabilities.
