Today, financial markets and cryptocurrencies experienced a sharp decline, raising investors' questions about the real reasons behind it. As the markets were preparing for a bullish season, a public and controversial dispute erupted between U.S. President Donald Trump and billionaire Elon Musk, which directly impacted investor confidence.
🔥 The full story: From alliance to enmity
Elon Musk, who was once close to Trump and tasked with the role of "Government Efficiency Minister," turned into one of his fiercest critics within days.
The spark was ignited after Musk attacked a new spending bill, describing it as "disastrous," stating it is "filled with favoritism and will increase the national deficit by $2.5 trillion."
The response was harsh from Trump, who threatened to cut all government contracts with Musk's companies, from Tesla to SpaceX and Starlink, saying it would "save billions."
😱 Serious accusations
In a shocking escalation, Musk hinted that Trump might be mentioned in the "Epstein files," questioning why they have not been fully disclosed yet.
Later, Musk supported a post on platform X calling for Trump's impeachment, with his deputy JD Vance taking over, which was understood as a complete break.
📉 Markets respond quickly
Alongside the escalation of this conflict, markets witnessed the following:
* Bitcoin dropped below $105,000.
* Ethereum dropped by 4%.
* Losses in technology company stocks, led by Tesla and Meta.
* Increase in fear and anxiety rates in the VIX index of U.S. markets.
🎯 Why did this dispute affect the market?
1. **Political uncertainty**: Any public conflict between politically and economically influential figures generates volatility and undermines investor confidence.
2. **Risk of losing government support**: The threat to cut contracts may affect the valuation of Tesla and SpaceX, two companies that carry significant weight in stock markets and even cryptocurrencies.
3. **Musk's role in the digital market**: Elon Musk is known for his significant influence on the cryptocurrency market. Any tension or attack on him is interpreted as a negative signal by traders.
📌 Summary:
The dispute between Trump and Musk is not just "political drama"; it has become a fundamental variable in market movements. Continued tension between the two may open the door to further declines, especially if institutional relations between the government and Musk's vital companies deteriorate.
💬 Do you think the market will recover soon? Or is the worst yet to come? Share your thoughts in the comments!