Lucknow: A high profile clash between U.S. President Donald Trump and Tesla CEO Elon Musk has sent shockwaves through the cryptocurrency market, erasing more than $180B in value just in 24 hours.
Bitcoin plunged 3% to $100,500, briefly falling below the $101000 mark, while Etherium (ETH) dropped 7% to $2420. XRP and Solana (SOL) followed suit, falling by 5% and 6% respectively. the overall crypto market contracted by 6%, marking one of the sharpest single day declines in recent months.
The decline was triggered by a fiery online exchange between Trump and Musk over a controversial tax and spending bill currently under debate in Washington. Musk labeled the bill which aims to make permanent the 2017 Trump-era tax cuts and raise the U.S. debt ceiling by $4 trillion- a disgusting abomination,” warning it could add $2.5 trillion to the national deficit and spark a recession in late 2025.
In retaliation, Trump, writing on Truth Social, threatened to cancel all government subsidies link to Musk, claiming ‘The easiest way to save money in our budget- Billions and Billions of Dollars- is to terminate Elon’s government subsidies and contracts.”
The feud intensified dramatically when Musk, in a viral post on X, alleged: ‘Time to drop the really big Bomb : @realDonaldTrump is in the Epstein files. That is the real reason they have not been public. Have a nice day, DJT!’
The public clash and its explosive nature rattled investors, igniting panic across crypto trading platforms and social media. Hashtags like #CryptoCrash and #TrumpVsMusk surged to the top of X’s global trends, with many users calling for a “peace summit” to stabilize markets.
An X user summed up chaos: Elon just accused Trump of being on the Epstein list. Trump clapped back. The market collapsed. Bitcoin’s down bad. Altcoins? Buried. S is pure warzone.’
The timing is especially notable given Musk’s prior support for Trump during the 2024 election and his brief tenure earlier this year as head of the Department of Government Efficiency (DOGE), a post he resigned from just last week.
Market analysts warn that ongoing political drama between influential figures like Trump and Musk could further destabilize investor confidence, especially in volatile sectors like cryptocurrency.
