Elon Musk and Donald Trump Feud Sends Crypto Markets Tumbling
The ongoing public dispute between U.S. President Donald Trump and Tesla CEO Elon Musk has had a significant impact on the cryptocurrency markets. According to CoinDesk, Bitcoin dropped by 4% to below $101,000, while the CoinDesk 20 index, which tracks the top 20 cryptocurrencies by market capitalization (excluding exchange coins, memecoins, and stablecoins), fell by more than 5%. Notable underperformers included SOL and SUI, each losing over 7%. Crypto-related stocks also suffered, with Coinbase (COIN) down 4.6%, MicroStrategy (MSTR) sliding 2.4%, and mining companies such as MARA Holdings (MARA), Riot Platforms (RIOT), and Core Scientific (CORZ) each losing 5%.
The feud escalated after Trump criticized Musk, threatening to terminate government contracts with Musk-led companies, while Musk accused Trump of being implicated in the Jeffrey Epstein files and supported calls for Trump’s impeachment. The tension contributed to a broader market sell-off, with Tesla (TSLA) stock falling more than 14% on Thursday. The market downturn coincided with the IPO of stablecoin issuer Circle (CRCL), which saw its shares surge from an initial $31 to over $100 before closing at $83.
