Elon Musk and Donald Trump once enjoyed a cordial relationship: Musk joined Trump’s business advisory councils in 2017, and by 2021 he publicly pushed for Trump’s Twitter ban to be lifted. Trump returned the favor—praising Musk’s achievements and even appointing him head of a symbolic “DOGE Office” in 2024. Over time, Musk donated millions to Trump’s causes, and the two often spoke warmly about each other’s ventures .
But in spring 2025 their bond cracked. Musk criticized Trump’s “Big Beautiful Bill” tax-cut plan as “debt slavery,” prompting Trump to threaten contract cancellations and even hint at deporting the Tesla CEO. Musk resigned from his DOGE role, called for a new political party, and openly condemned Trump’s fiscal policies. The public spat turned a friendly alliance into a fierce feud .
Now Trump’s policies forced Musk to create his own political party called the America Party, and the tensions between Trump and Musk are going to rise—which may trigger a serious market sell‑off.
How Crypto Markets Are Feeling the Heat
1. Bitcoin ETF Outflows
As news of the feud spread, U.S. spot Bitcoin ETFs saw $278 million in outflows in a single day—funds that turned to cash rather than buy more BTC .
Example: A large investor who had planned to add $10 million to a Bitcoin ETF instead pulled their order when Musk’s tweets went public, causing share-creation to stall and pressuring ETF managers to sell BTC.
2. Bitcoin Price Dip
In early June, Bitcoin slid from around $107 000 to $100 400 as traders dumped risk assets amid political uncertainty .
Example: Automated trading bots saw Musk threaten Trump, triggered sell orders at key support levels, and drove BTC down 6% in under two hours—illustrating how quickly crypto can react to social-media storms.
3. Dogecoin and Market Sentiment
Dogecoin—Musk’s longtime favorite token—bounced wildly on each new jab between the two. While DOGE briefly spiked on Musk-themed tweets, it ultimately traded lower as the feud intensified.
Example: When Trump’s team hinted they’d “unleash the DOGE monster” against Musk’s interests, DOGE vaulted 12% intraday, only to retreat once the threat proved empty.
Why It Matters
Crypto markets often mirror broader risk sentiment. When political allies like Musk and Trump clash, investor confidence can waver—especially since both figures have been vocal supporters of digital assets. The Musk-Trump fallout shows that, despite crypto’s promise of decentralization, its markets remain sensitive to high-profile personalities and their conflicts.
Bottom Line: What began as a tech-meets-politics friendship has turned into a headline-grabbing feud—sending ripples through ETFs, tokens, and trader sentiment alike. In 2025’s fast-moving crypto world, even a single tweetwar between two titans can move billions of dollars in minutes.