📉 Immediate Fallout: Sharp Sell-Offs
On June 5–6, 2025, the public feud triggered intense volatility:
Bitcoin fell below $101,000.
Ethereum dropped ~6% in a day.
A global crypto market cap drop of ~4%, wiping out about $170 billion nypost.com+15coinjournal.net+15economictimes.indiatimes.com+15cointelegraph.com+1nypost.com+1cryptorank.io+5disruptafrica.com+5economictimes.indiatimes.com+5.
Massive liquidations occurred:
Nearly $980 million in futures were liquidated in 24 hours (about $874M in longs) cryptorank.io+1cointelegraph.com+1.
📊 Why the Clash Rocked Crypto
Sentiment Shock
When two mega-influencers clash—Trump and Musk liked to represent stability. Their feud shattered that, pulling risk appetite out of crypto theblock.co+15cointelegraph.com+15disruptafrica.com+15.
Asset Correlation
The clash dragged on Tesla shares (~14% plunge), spilling uncertainty into crypto markets nypost.com+4theguardian.com+4thestreet.com+4.
Targeted Impact on Dogecoin
Musk-driven Dogecoin was hit hardest:
Dropped ~7–11% in a single day and down 14% across a week.
Bearish chart patterns suggest potential drops toward $0.06 thestreet.com+15cointelegraph.com+15phemex.com+15.
📈 Recovery & Market Reaction
After hitting bottom on June 6, bitcoin and ether rebounded:
BTC climbed back to mid-$100k (~$105k).
Ethereum hovered around $2,500 disruptafrica.com+1reuters.com+1cryptopolitan.com+1binance.com+1.
Some calm returned quickly, especially after hints of reconciliation between Trump and Musk, which helped markets stabilize coindesk.com+15uk.finance.yahoo.com+15ft.com+15.
🔍 Longer-Term Implications
Volatility in Focus
This incident is a reminder: crypto remains highly responsive to macro-political drama involving major personalities en.wikipedia.org+1margex.com+1cryptopolitan.com+1finance.yahoo.com+1.
Shifting Fear & Greed
Crypto’s Fear & Greed Index swung from “Greed” to “Neutral,” matching the 4% market cap decline cointribune.com+15coinjournal.net+15economictimes.indiatimes.com+15.
Investment Flows Splintered
U.S. crypto ETFs faced outflows (~$278M) on June 5, while Ethereum-focused ETFs remained resilient with inflows disruptafrica.com+1cointribune.com+1coinjournal.net.
🧭 Outlook: What Comes Next?
Headline Sensitivity
Expect markets to react sharply whenever Musk or Trump engage publicly on crypto—especially if allegations intensify.
Rebound Potential
With both bitcoin and ether already recovering, any détente between them may prompt a broader rally.
Focus on Altcoins
Meme-coins, especially Dogecoin, remain vulnerable without Musk’s consistent support. They could slosh around dramatically.
✅ Final Take
Short-term: The clash caused a mini-crash and large liquidations in crypto markets.
Medium-term: Markets rebounded as tensions eased, but investor sentiment has been shaken.
Long-run: The incident reinforces crypto’s hypersensitivity to individual influencers and geopolitical noise—particularly when Trump's policy moves (e.g., crypto deregulation, Bitcoin reserve talk) are bound to jockey with Musk’s influence.
Bottom line: Yes, the feud had a serious, albeit temporary, impact—sparking a sharp sell-off and liquidations. But markets have already bounced back, albeit warily, as traders begin factoring in