The public feud between Elon Musk and Donald Trump on social media platforms, particularly on June 5, 2025, contributed to a dip in Bitcoin’s price, briefly pushing it below $101,000. The conflict began when Musk criticized Trump’s tax and spending bill, calling it a “disgusting abomination” and urging lawmakers to oppose it.
Trump responded by threatening to terminate Musk’s government contracts, while Musk escalated the dispute with personal attacks, including allegations about Trump’s involvement in the Epstein files. This high-profile spat, amplified by their respective platforms (X for Musk and Truth Social for Trump), created market uncertainty, leading to significant volatility in the cryptocurrency space.
Bitcoin fell to around $100,000, with losses of approximately 4-5%, and other cryptocurrencies like Ethereum and Dogecoin saw declines of 7-8%. The broader crypto market experienced nearly $1 billion in liquidations, with posts on X noting $285 million to $324 million in Bitcoin longs liquidated in a single hour. The feud’s impact was compounded by political and economic concerns over Trump’s legislative agenda, which some analysts projected would add $2.4 trillion to the national debt over a decade. While Bitcoin later stabilized, the event highlighted the market’s sensitivity to high-profile political disputes.
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The public feud between Elon Musk and Donald Trump, which briefly sent Bitcoin below $101,000 on June 5, 2025, has broader implications for markets, politics, and the cryptocurrency ecosystem. The sharp drop in Bitcoin’s price (4-5%) and the broader crypto market’s $1 billion in liquidations demonstrate how high-profile disputes can trigger rapid market reactions. Cryptocurrencies, often viewed as speculative assets, are particularly sensitive to sentiment shifts caused by influential figures like Musk and Trump.
Musk’s significant influence on crypto markets, often dubbed the “Musk effect,” stems from his ability to sway investor sentiment via X posts. Similarly, Trump’s political clout and his administration’s policies (e.g., pro-crypto stance but controversial fiscal plans) can create uncertainty, as seen with the projected $2.4 trillion debt increase from his tax bill. The event underscores the crypto market’s vulnerability to external narratives, especially when amplified by social media platforms like X and Truth Social.
Political Polarization and Economic Policy
The feud highlights a growing divide within conservative and libertarian circles, where Musk and Trump represent differing visions. Musk’s criticism of Trump’s tax and spending bill as fiscally irresponsible reflects a libertarian-leaning stance prioritizing limited government intervention. Trump, meanwhile, pushes a populist agenda with tax cuts and deregulation, even if it risks inflating the national debt.
This clash could fracture their overlapping supporter bases, particularly among crypto enthusiasts who align with both figures’ pro-crypto rhetoric but differ on broader economic priorities. The public nature of the dispute, played out on X and Truth Social, amplifies political polarization, potentially influencing voter sentiment ahead of future policy debates.
Trump’s pro-crypto policies, including promises of a Bitcoin strategic reserve and a crypto advisory council, have bolstered market optimism. However, his threat to terminate Musk’s government contracts (e.g., SpaceX deals) signals potential instability in his administration’s approach to tech and crypto leaders. Musk’s push for fiscal restraint could align with crypto advocates who favor decentralized systems over government-driven financial policies. However, his influence may wane if political retaliation escalates, potentially affecting his ability to shape crypto-friendly regulations.
The feud could slow momentum for crypto adoption if investors perceive heightened political risk, especially with figures like Gary Gensler still influencing regulatory discussions until at least January 20, 2026. The rapid dissemination of the feud via X and Truth Social illustrates how social media can amplify personal conflicts into market-moving events. X posts tracked the Bitcoin dip in real-time, with some users noting $285-$324 million in liquidations of Bitcoin longs within an hour.
Advocates for fiscal discipline and reduced government spending, as seen in his opposition to Trump’s tax bill. His libertarian streak aligns with crypto’s ethos of decentralization and skepticism of centralized financial systems. Prioritizes populist tax cuts and deregulation to stimulate growth, even at the cost of increased debt. His pro-crypto stance is pragmatic, aimed at appealing to a growing voter and investor base, but lacks Musk’s ideological purity on decentralization.
Musk leverages his role as a tech titan and X’s owner to shape public discourse, often using provocative rhetoric to rally support. His criticism of Trump positions him as a counterweight within the conservative-leaning tech and crypto communities. Trump relies on his political authority and Truth Social to maintain his base’s loyalty. His threats against Musk’s contracts reflect a willingness to use state power to settle personal scores, contrasting with Musk’s anti-establishment rhetoric.
Both support cryptocurrency, but their motivations differ. Musk sees crypto as part of a broader technological and economic transformation (e.g., aligning with his vision for innovation at Tesla and SpaceX). Trump’s support appears more opportunistic, tied to political branding and economic promises. The feud could strain their ability to collaborate on crypto-friendly policies, potentially delaying initiatives like a U.S. Bitcoin reserve or regulatory clarity.
Musk and Trump share overlapping supporters, particularly among crypto investors and conservative voters. However, Musk’s attacks on Trump’s fiscal policies and Trump’s retaliatory threats alienate segments of this base, creating a schism. X posts reflect this divide, with some users backing Musk’s fiscal critique and others defending Trump’s leadership.
The Musk-Trump feud, while brief, underscores the fragility of crypto markets to high-profile conflicts and the growing interplay between politics, social media, and finance. The divide between Musk’s libertarian-leaning, tech-driven vision and Trump’s populist, state-centric approach could have lasting effects on crypto policy, market stability, and political alignments.