#TrumpVsMusk The recent and public confrontation between Donald Trump and Elon Musk has generated a financial earthquake that extends into the crypto world. What began as a strategic alliance in 2024 abruptly fractured when Musk labeled a Trump bill as a "disgusting abomination," to which the former president replied by accusing Musk of going "crazy" and threatening to withdraw million-dollar government contracts from companies like Tesla and SpaceX. This exchange, visible on platforms like X and Truth Social, included serious accusations — Musk linked Trump to Jeffrey Epstein, while the latter hinted at cuts to subsidies for SpaceX — and culminated in a poll by Musk promoting a "new political party."
The impact on the markets was immediate: Bitcoin fell by 4%, breaking the key support of $101K, and the CoinDesk 20 index plummeted by 5% amidst massive liquidations totaling over $324 million in long positions. The meme coin $TRUMP, a symbol of the previous alliance, sank by 10%, evidencing how political volatility transmits to digital assets. Tesla, for its part, closed down 14%, dragging down stocks related to the crypto ecosystem like Coinbase.
This clash not only reflects a personal rift but also a systemic risk: Musk was a key advisor on technology policies for the Trump administration, and his exit creates uncertainty about the regulatory future of crypto assets and subsidies for clean energy. Additionally, his influence as a "beacon" of investor sentiment in crypto — visible in previous movements with Dogecoin or Bitcoin — amplifies the effect. Analysts warn that the dispute could slow down progress in legal frameworks for cryptocurrencies or even reverse tacit support, while "whales" take advantage of the panic to liquidate positions. In a market where narrative moves mountains, this battle between titans is a reminder that tweets can be as decisive as fundamentals.