In an unexpected turn of events that has taken both Wall Street and the crypto ecosystem by surprise, President Donald Trump and Elon Musk have unleashed a fierce public dispute that is already having palpable consequences in the markets. What began as a political disagreement has quickly escalated into a reputational and financial conflict, affecting everything from Tesla stock to the price of Bitcoin, which is currently trading around USD $104,000.
A dispute that goes beyond politics
It all began with Elon Musk's harsh criticism of Trump's new economic package, which he called "a disgusting abomination" due to its fiscal impact and excessive government spending. Trump quickly counterattacked, announcing that he would eliminate all federal subsidies and contracts with companies linked to Musk.
“The fastest way to save billions is to end federal money going to Elon,” Trump wrote on Truth Social, sparking an unprecedented crossfire.
Musk fires back with explosive accusations
The escalation reached a new level when Musk responded with an incendiary accusation: in a post on X (formerly Twitter), he insinuated that Trump is linked to the Jeffrey Epstein scandal files.
“@realDonaldTrump is in the Epstein files. That's the real reason they haven't been made public. Have a nice day, DJT!”
This message sparked a wave of reactions and further fueled media tension. The consequences were quickly felt in the markets: Tesla's shares plummeted 20%, losing USD $100 billion in market capitalization in a matter of hours.
The background: Musk's departure from D.O.G.E.
The conflict also has an institutional undertone. Musk had held a position within the Department of Government Efficiency (D.O.G.E), a Trump-sponsored initiative to reduce public spending and modernize the federal administration.
Musk recently resigned from that position and made a provocative statement:
“Without me, Trump would have lost the election.”
Trump, for his part, responded that he was the one who asked for the businessman's departure:
"Elon was exhausted. I asked him to leave," he said during a press conference.
In that same space, the president defended his controversial economic legislation as "the largest tax cut ever conceived" and insisted that failing to pass it would mean a "68% tax increase and worse."
Direct impact on the crypto ecosystem
In parallel to the political and corporate drama, the cryptocurrency market began to reflect investor jitters. In recent hours, Bitcoin fell to USD $101,552, a decline of more than 3% in 24 hours. While it has now rebounded toward USD $104,000, bearish pressure remains. #TrumpVsMusk
The rest of the market is not spared either: Ethereum, BNB, Solana, XRP, Dogecoin, and Cardano are all experiencing declines ranging between 4% and 8% on June 5th. The correlation with traditional markets is clear: the conflict between two of the most influential figures of the 21st century is sowing uncertainty.
Is this a temporary correction or the beginning of something deeper?
Many analysts view this episode as a short-term catalyst in an already highly volatile market. However, the combination of political tensions, regulatory pressures, and conflicting statements could lead to a more prolonged risk aversion scenario.
Bitcoin, which had been on a positive streak above $100,000 for 58 consecutive days, now faces a new test. Losing support below $100,000 could accelerate further selling, especially if traditional markets remain in the red.
A conflict with global repercussions
Beyond the economic aspect, the clash between Musk and Trump is also a sign of the times. Both are figures with enormous digital influence, capable of moving markets with a single statement. When that power is used to attack each other, the collateral damage can be immense.
The outcome of this impasse is still uncertain, but what is clear is that markets—both traditional and crypto—are paying close attention. And in an environment where perceptions can change in seconds, what is just a correction today could turn into a larger storm tomorrow.
