Will trump and elon fight effect crypto..?Yes, the ongoing feud between Donald Trump and Elon Musk is significantly impacting the cryptocurrency market, causing notable volatility and investor unease.

🔥 Market Impact Overview

The public dispute between Trump and Musk has led to a sharp decline in major cryptocurrencies: 

• Bitcoin (BTC): Dropped below $101,000, with approximately $308 million in long positions liquidated in the past 24 hours. 

• Ethereum (ETH): Fell over 7%, trading around $2,420. 

• Dogecoin (DOGE): Plunged 20%, reflecting heightened sensitivity due to Musk’s previous endorsements. 

Overall, the crypto market has lost over $170 billion in capitalization, with nearly $1 billion in positions liquidated, indicating a significant shift to risk-off sentiment among investors. 

⚔️ Origins of the Feud

The conflict escalated over disagreements on the “One Big Beautiful Bill,” a government spending package proposed by Trump. Musk criticized the bill for increasing the deficit and undermining his efforts in the Department of Government Efficiency. In retaliation, Trump threatened to cut off federal contracts with Musk’s companies, including Tesla and SpaceX.  

This public spat has eroded investor confidence, leading to declines in both traditional markets and crypto assets associated with the two figures. For instance, Trump Coin, a meme-based cryptocurrency endorsed by Trump, experienced a 12% drop in trading. 

🧠 Investor Sentiment and Outlook

The Crypto Fear & Greed Index has shifted into “fear” territory, dropping 12 points to 45, reflecting growing investor anxiety. 

While some analysts remain optimistic about Bitcoin’s long-term prospects, targeting $120,000 by year-end, the current political tensions pose short-term risks. $BTC