#TrumpVsMusk The conflict between Donald Trump and Elon Musk, which recently occurred (June 2025), has already had a noticeable impact on the cryptocurrency market, and its consequences could be long-term.
How the quarrel between Trump and Musk affected the cryptocurrency market:
* Price declines in cryptocurrencies:
* Dogecoin (DOGE): The price of Dogecoin fell significantly (by 10% in one day and 22% in a week) amid the escalation of the dispute. This is due to the fact that Elon Musk is a well-known supporter of Dogecoin, and his statements often influence the price of this cryptocurrency.
* Bitcoin (BTC) and other major cryptocurrencies: Bitcoin also experienced a decline (almost 3%, approaching $100,000), leading to the liquidation of long positions worth a significant amount. Other cryptocurrencies, such as Ethereum, XRP, and Solana, also showed a downturn.
* Overall market capitalization: The total market capitalization of digital assets decreased by 4%.
* Fear and Greed Index: The Fear and Greed Index dropped to 45 points, which corresponds to the fear zone, reflecting overall nervousness in the market.
* Volatility: The conflict between two such influential figures, whose statements can provoke strong reactions in the markets, has increased the volatility of cryptocurrencies.
Why this happened:
* Elon Musk's influence: Musk has long been known for his influence on the cryptocurrency market, especially on Dogecoin. His tweets and statements have often caused sharp price fluctuations. If he starts to clash with other influential figures, it could create uncertainty and negatively impact cryptocurrencies associated with him.
* Donald Trump's position: Although Trump was previously skeptical about cryptocurrencies, he has recently expressed support for the industry. He even promised to take steps to develop the sector, halt regulatory actions that hinder cryptocurrency growth, and support Bitcoin mining in the U.S. He also opposed the introduction of a central bank digital currency (CBDC) and created strategic reserves of Bitcoins and other cryptocurrencies. His own meme coins, such as $TRUMP, have also gained popularity.
* In this conflict, Trump threatened to end government subsidies and terminate contracts with Musk, which intensified the negative background.
* Uncertainty and concerns: The public conflict between two such powerful figures, especially if accompanied by threats of contract termination or other negative statements, creates uncertainty in the markets. Investors fear potential regulatory or economic consequences, leading to sell-offs.
Long-term consequences:
* Political influence: If the conflict continues or escalates, it may affect the perception of the crypto industry in political circles. Trump's statements, despite his overall support, may be interpreted as a signal of potential risks or instability regarding crypto projects associated with major figures.
* Regulatory landscape: Trump's future actions, especially if he becomes president, could shape the regulatory landscape for cryptocurrencies in the U.S. If he adheres to a supportive policy, it could be positive for the market, but any conflict with key players could lead to adjustments.
* Market perception: Prolonged public quarrels between influential figures can undermine investor confidence and provoke increased caution, which may slow growth or cause corrections in the market.
Overall, the quarrel between Trump and Musk has already shown that the statements and actions of influential figures carry significant weight in the cryptocurrency market, causing not only price declines but also increased overall instability. Future consequences will depend on how this conflict develops and what further steps both sides will take.
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