What started as a political disagreement over a tax and spending bill has rapidly spiraled into a high-stakes feud between President Donald Trump and Elon Musk—sending shockwaves through the crypto market.
Bitcoin dropped over 4%, trading near $100,500 late Thursday, inching closer to dipping back into five-digit territory for the first time in a month.
Crypto stocks slumped, with Coinbase (COIN) down 4.6%, MicroStrategy (MSTR) off 2.4%, and miners like MARA, RIOT, and CORZ each dropping about 5%.
The downturn coincided with a dramatic public clash between Trump and Musk. The disagreement began over the potential impact of Trump’s so-called “Big, Beautiful Bill” on the U.S. national debt but quickly escalated into personal attacks.
Trump accused Musk of having “gone crazy” and threatened to revoke government contracts tied to his companies, including SpaceX and Tesla. In response, Musk alleged Trump’s involvement in the Jeffrey Epstein files, pledged to retire SpaceX’s Dragon spacecraft, and endorsed a post calling for Trump’s impeachment and replacement by VP J.D. Vance. Tesla stock plummeted more than 14% by the end of the day.
Circle IPO Triggers Mixed Reactions
Thursday also marked the high-profile IPO of stablecoin issuer Circle (CRCL), which added to volatility. The stock surged from its $31 opening price to over $100 intraday before closing at $83. While a milestone for crypto, some investors recalled how Coinbase’s 2021 IPO coincided with a market top, adding a layer of caution.
With geopolitical drama, regulatory headwinds, and IPO excitement all colliding, the crypto market faces a volatile path ahead—especially as Bitcoin flirts with the $100K level amid uncertain sentiment.
