Trump and Musks Feud Sends Bitcoin Plummeting Towards $100,000

A heated exchange between US President Donald Trump and billionaire Elon Musk has intensified pressure on Bitcoin, causing its price to decrease by nearly 3%, bringing it closer to the $100,000 mark.

On May 5, Musk criticized Trump’s tariff proposals, sparking a conflict. He asserted that the president’s initiative would «trigger a recession in the latter half of this year.»

Trump subsequently threatened on Truth Social to revoke Musk’s government contracts, claiming this would save taxpayers «billions of dollars.»

In response, Musk announced the withdrawal of SpaceX from operating Dragon spacecraft, though he later retracted this statement.

As of the time of writing, Tesla shares (ticker: TSLA) are trading at $284.70, having dropped by 14.26% within a single day, according to Google Finance.

The clash between these influential figures has caused Bitcoin’s price to tumble from $105,915 to $100,500. Currently, the asset is valued at approximately $103,200, as per CoinGecko.

This decline resulted in nearly $341.75 million in liquidations of long Bitcoin positions over a 24-hour period, according to Coinglass.

The feud between Trump and Musk also contributed to a 4% decrease in the total market capitalization of digital assets.

Other cryptocurrencies have faced declines as well, with Ethereum down 5.6%, XRP slipping by 2.8%, and Solana falling 3.2%.

The Fear and Greed Index has dropped to 45 points, signifying a state of fear in the market.

It’s worth noting that on May 23, the price of Bitcoin fell by over 3% within an hour following Trump’s threats of imposing a 50% tariff on EU products.