Trump VS Elon Musk

Effect On Crypto

📉 Market Volatility & Headline Response

Bitcoin: The coin dipped below $101K during the initial escalation on June 5 but rebounded around $105K as markets stabilized .

Ethereum: Suffered a ~6% decline alongside Bitcoin during peak tension .

Memecoins:

Dogecoin dropped between 6–12% over the week, hit hard as Musk and Trump sparred and as Musk distanced himself politically .

Other meme tokens like MELANIA and the satirical KBBB surged then crashed (~98%) as traders chased reaction swings .

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⚠️ Risk-Off Behavior & Liquidations

Liquidations: Roughly $308 million in Bitcoin long positions were liquidated amid the price drop near $100K .

Wider crypto sell-off: CoinDesk‑20 index (top 20 cryptos) was down ~5%, with tokens like SOL and SUI falling over 7% .

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💼 Crypto as a Hedge

Despite volatility, Bitcoin held firm above $105K during peak feud—indicating it may be viewed increasingly as a hedge from equity and political turmoil . Markets briefly interpreted BTC and ETH rebounds as investors seeking shelter from traditional market risks.

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📊 Prediction Markets & Sentiment

Polymarket saw over $4 million wagered on Trump-Musk feud events—e.g., whether Musk unfollows Trump, reconciliation odds, even impeachment speculation . This shows crypto-native traders tracking personal feuds as tradable political risk.

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🔮 Outlook for Crypto Traders

Factor Bull Case Bear Case

Feud De-escalation Could stabilize crypto and bring back risk appetite If Trump threatens regulation or Musk’s ventures, more crypto weakness

Ongoing volatility Media-driven swings could boost short-term trading opportunities Heightened tail-risk around Dogecoin or other memecoins

Macro vs. M&A Bitcoin may strengthen as a geopolitical hedge Broader economic policy risk (tariffs, debt) could drag crypto overall.

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