The feud between US President Donald Trump and Tesla CEO Elon Musk has sent shockwaves through the cryptocurrency market, with Bitcoin dropping 3 per cent to $100,500 amid rising investor anxiety. The cautious market mood triggered by the clash also led to losses for altcoins such as Ethereum (ETH), XRP and Solana (SOL).
The cryptocurrency market tanked 6 per cent in the last 24 hours, wiping out over $170 billion in total market value, according to reports. Major cryptocurrencies such as Bitcoin, Ethereum, XRP and Solana fell by 3 per cent, 7 per cent, 5 per cent, and 6 per cent, respectively. Bitcoin briefly slipped below $101,000, while Ethereum dropped to $2,420.
The dramatic plunge in Bitcoin sparked a frenzy on social media, with #CryptoCrash and #TrumpVsMusk trending globally on X as users reacted to the escalating feud.
The dramatic plunge in Bitcoin sparked a frenzy on social media, with #CryptoCrash and #TrumpVsMusk trending globally as users reacted to the escalating feud.
"Elon just accused Trump of being on the Epstein list. Trump clapped back. The market instantly collapsed. Bitcoins’s down bad. Altcoins? Buried. X is pure warzone," wrote an user on X.
"Is it just me, or do we need a peace summit for our crypto?," writes an user.
The drop comes in the wake of a sharp confrontation between Trump and Musk over the President’s tax bill.
The controversial bill seeks to make permanent the tax cuts introduced under Trump’s 2017 Tax Cuts and Jobs Act (TCJA). It also proposes a $4 trillion hike in the U.S. debt ceiling, among other major fiscal measures.
'Disgusting abomination'
Tensions flared when Musk called the bill “a disgusting abomination” on X. He warned that the bill could add $2.5 trillion to the federal deficit and cautioned that Trump’s tariffs might trigger a recession in the latter half of 2025.
On Thursday, Trump took to X and wrote on the Truth Social platform, "The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon's governmental subsidies and contracts." This was followed by personal insults and explosive allegations, with the feud escalating sharply after Musk posted: “Time to drop the really big bomb: @realDonaldTrump is in the Epstein files. That is the real reason they have not been made public. Have a nice day, DJT!”
Musk played a significant role in backing President Trump during the 2024 election. Following Trump’s inauguration on January 20, he was appointed to head the Department of Government Efficiency (DOGE), tasked with cutting government waste and expenses. Musk resigned from the position last week.
