$BTC The trigger: an increasingly intense dispute between U.S. President Donald Trump and Tesla CEO Elon Musk, both of whom had previously supported pro-cryptocurrency narratives. Their public rift sent shockwaves through financial markets.

Musk criticized Trump's spending bill—called the "Great Beautiful Bill"—and supported calls for impeachment. In retaliation, Trump promised to terminate Musk's government contracts, claiming it would save "billions." The eye-for-an-eye rhetoric generated a broader sense of risk aversion, unsettling both traditional investors and cryptocurrency investors.