#TrumpVsMusk A conflict between the two heightened the sensitivity of the cryptocurrency market to political conflicts and aggressive rhetoric. The episode reignites the warning about non-structural risks, not only the volatility tied to economic fundamentals but also the influence of public figures. For investors, the scenario demands caution — with close monitoring of the upcoming exchanges between the two and possible regulatory interventions. However, for Bitcoin, this may open space as a resilient asset in times of institutional political shock. Consequently, there was a strong sell-off in crypto assets: Bitcoin fell between 2% and 6% (reaching up to USD 100 thousand), Ethereum dropped by up to 6.6%, and Dogecoin depreciated by about 7–10%.
"The public dispute between Donald Trump and Elon Musk had direct and significant impacts on the cryptocurrency market. It all started when Musk harshly criticized Trump's tax and spending bill – nicknamed 'One Big Beautiful Bill' – calling it a 'repugnant abomination.' Trump responded by threatening to cut federal contracts and subsidies to Musk's companies, like Tesla and SpaceX" Source: https://financefeeds.com
"This drop triggered leveraged liquidations of nearly USD 1 billion in just 24 hours, according to estimates from major platforms like Binance, Bybit, and OKX" Source: https://www.coindesk.com
"The global crypto asset market lost between USD 170 and USD 230 billion in market value." Source: https://financefeeds.com
"The climate of uncertainty was fueled by fears that Trump would accelerate regulatory actions against Musk or impose tariffs, reducing the confidence of institutional investors." Source: https://bravenewcoin.com
In the short term, more fluctuations and risk aversion are expected. In the medium and long term, despite the turbulence, some analysts point out that Bitcoin may emerge strengthened as a safe haven against political instability and possible severe regulation.