The cryptocurrency market is reeling from the escalating public feud between US President Donald Trump and Tesla CEO Elon Musk. Whole liquidations have surged previously 24 hours, nearing $1 billion.
Moreover, the general market capitalization has dropped, with seven of the highest 10 cryptocurrencies posting losses in the present day.
How Did The Trump-Musk Feud Affect the Crypto Market?
Tensions between Trump and Musk erupted over the latter’s criticism of the President’s tax and spending invoice.
“This large, outrageous, pork-filled Congressional spending invoice is a disgusting abomination. Disgrace on those that voted for it: you recognize you probably did flawed. You recognize it,” Musk posted on X.
The feud escalated as Trump dismissed Musk’s criticisms, accusing him of affected by “Trump Derangement Syndrome.” Trump additionally threatened to revoke authorities subsidies and contracts for Musk’s companies.
The dispute, which is enjoying out publicly on X, has launched unpredictable variables into the market, together with private scandals and coverage disagreements.
Moreover, it has additionally rattled investor confidence, with the market going through vital downward stress. BeInCrypto information confirmed that over the previous 24 hours, the full crypto market capitalization fell 5.1%.
Seven of the highest ten cash have depreciated over the previous day. Musk’s favourite, Dogecoin (DOGE), noticed the sharpest fall of seven.9%, adopted by Ethereum’s (ETH) 6.6% decline.
Bitcoin (BTC) dipped 2.4% and fell beneath the $105,000 mark. The President’s meme coin was additionally negatively impacted. In accordance with the newest information, Official Trump (TRUMP) was down 10.8%.
This value drop triggered a wave of liquidations, as many leveraged positions have been compelled to shut, amplifying volatility. In accordance with Coinglass information, over the previous 24 hours, whole liquidations reached $988.09 million.
228,646 merchants have been liquidated throughout this era, highlighting the dimensions of the market’s response. Bitcoin bore the brunt of the sell-off, with liquidations amounting to $308.1 million for lengthy positions and $33.8 million for shorts. Ethereum adopted intently, recording $260.1 million in lengthy liquidations and $26.3 million in shorts.
Lengthy positions accounted for $888.7 million of the full liquidations, whereas quick positions contributed $99.3 million, reflecting the depth of the risk-off sentiment.
That’s not all. The Bitcoin Coinbase Prime Index, a key indicator of US institutional investor sentiment, additionally turned adverse.
‘The Coinbase Prime Index simply flipped adverse, exhibiting that US institutional buyers and whales abruptly turned bearish. Let’s see how this performs out within the quick time period, however there’s a brand new narrative unfolding proper now, simply because the “Commerce Conflict” theme was beginning to lose its impression,” an analyst wrote.
In the meantime, some even suspect the feud is an element of a bigger plan to govern markets.
“Elon Musk and Donald Trump have created a faux ‘beef’ to push the markets decrease. That is manipulation of the very best order. It’s insane to assume they might do that,” a market watcher said.
Will Bitcoin Profit from the Trump-Musk Fallout?
Past the short-term volatility, the fallout has raised considerations about longer-term financial impacts. Musk has publicly warned of a possible US recession within the second half of 2025, attributing it to Trump’s tariff insurance policies.
“The Trump tariffs will trigger a recession within the second half of this yr,” the put up learn.
This warning aligns with broader market fears, as Trump’s commerce insurance policies have already contributed to market instability earlier this yr. Regardless of this, some speculate that the breakdown within the Trump-Musk relationship may benefit Bitcoin.
“The downfall of Elon Musk and Trump’s relationship might be marked by the printing of cash like we’ve by no means seen earlier than. Bitcoin goes to fkn explode. Brace your self,” a consumer claimed.
Kashif Raza, Founding father of Bitinning, additionally defined that the dispute might have a number of implications for Bitcoin. His put up explored varied situations, resembling Trump imposing sanctions or eradicating subsidies from Musk’s corporations, Musk probably being deported, or Musk choosing Bitcoin to bypass restrictions. It additionally considers the opportunity of Musk accepting Bitcoin donations if he runs for workplace.
“In all doable situations, Bitcoin is profitable as a result of censorship resistance is one in every of its sturdy options,” Raza famous.
Whereas it’s unsure whether or not these situations will materialize, one factor is for certain: Because the Trump-Musk feud continues, its ripple results will doubtless preserve the crypto market on edge.
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