The public quarrel between Elon Musk and Donald Trump On social media platforms, especially on June 5, 2025, contributed to a drop in Bitcoin prices, briefly pushing it below $ 101,000. The conflict began when Musk criticized the Trump tax and expenditure bill, calling it a “disgusting abomination” and urging legislators to oppose it.
Trump replied by threatening to terminate Epstein Files. This high-level spit, amplified by their respective platforms (X for musks and social truth for Trump), created the uncertainty of the market, leading to significant volatility in the space of cryptocurrency.
Bitcoin Fallen at $ 100,000, with losses of around 4 to 5% and other cryptocurrencies like Ethereum and Dogecoin has seen drops from 7 to 8%. The wider market of cryptography has experienced nearly a billion dollars in liquidations, with positions on X noting $ 285 million at $ 324 million in Bitcoin long liquidated in one hour. The impact of the quarrel has been aggravated by political and economic concerns concerning the legislative program of Trump, which some projected analysts would add 2.4 billions of dollars to the national debt over a decade. While Bitcoin stabilized later, the event highlighted market sensitivity to high -level political disputes.
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The public quarrel between Elon Musk and Donald Trump, who briefly sent Bitcoin below $ 101,000 on June 5, 2025, has broader implications for markets, policy and cryptocurrency ecosystem. The sharp drop in the price of bitcoin (4-5%) and the widest of the 1 billion liquidation cryptography market show how large-scale conflicts can trigger rapid market reactions. Cryptocurrencies, often considered as speculative assets, are particularly sensitive to changes in feeling caused by influential characters like Musk and Trump.
Musk’s significant influence on cryptographic markets, often nicknamed “the musk effect”, stems from his ability to influence the feeling of investors via X Posts. Likewise, Trump’s political influence and the policies of his administration (for example, the pro-Crypto position but controversial budgetary plans) can create uncertainty, as we see with the increase in the expected debt of 2.4 billions of dollars compared to his tax bill. The event highlights the vulnerability of the cryptography market with external stories, especially when it is amplified by social media platforms like X and Truth Social.
Political and Political Economic Polarization
The quarrel highlights an increasing fracture in conservative and libertarian circles, where Musk and Trump represent different visions. Musk’s criticism on the Trump tax and expenditure bill, as an irresponsible tax, reflects a position denominated on priority to the limited government. Trump, on the other hand, pushes a populist program with tax reductions and deregulation, even if it may inflate the national debt.
This confrontation could fracture their bases of overlapping supporters, in particular among crypto enthusiasts who line up with pro-Crypto rhetoric of the two figures but differ on broader economic priorities. The public nature of the dispute, played on X and Social Truthamplifies political polarization, potentially influencing the feeling of voters before future political debates.
Trump’s pro-Crypto policies, including the promises of a Bitcoin strategic reserve and an Crypto Advisory Council, have strengthened market optimism. However, his threat to terminate Musk’s government contracts (for example, Spacex offers) signals potential instability in the approach of its administration towards technology and crypto leaders. Musk’s pressure on budgetary restraint could align themselves with the defenders of cryptography who promote decentralized systems to government -focused financial policies. However, his influence can decline if political reprisals degenerate, potentially affecting his ability to shape the cryptographic user -friendly regulations.
The quarrel could slow the momentum for the adoption of the crypto if investors perceive an increased political risk, in particular with personalities such as Gary Gensler always influencing regulatory discussions until January 20, 2026. The rapid dissemination of the quarrel via X and Truth Social illustrates how social media can amplify personal conflicts in travel events. X Posts followed the drop in Bitcoin in real time, some users noting $ 285 to $ 324 million in bitcoin liquidations a long time.
Defenders of tax discipline and the reduction of public spending, as we can see in his opposition to the Trump tax bill. His libertarian sequence aligns with the ethics of decentralization and skepticism of centralized financial systems of crypto. Prioritates the reductions in populist taxes and deregulation to stimulate growth, even at the cost of the increase in debt. Its pro-Crypto position is pragmatic, aimed at using a growing voters and investors’ basis, but lack of musk ideological purity on decentralization.
Musk takes advantage of his role as Tech Titan and the owner of X to shape public discourse, often using provocative rhetoric to rally support. His criticism of Trump positions him as a counterweight within conservative technological and cryptographic communities. Trump relies on his political authority and his social truth to maintain the loyalty of his base. His threats against Musk’s contracts reflect a desire to use the power of the state to regulate personal scores, contrasting with the anti-establishment rhetoric of Musk.
The two support cryptocurrency, but their motivations differ. Musk considers crypto as part of a broader technological and economic transformation (for example, aligning its vision of innovation in Tesla and SpaceX). Trump’s support seems more opportunistic, linked to the political brand image and economic promises. The quarrel could erase their ability to collaborate on cryptographic user -friendly policies, which could delay initiatives such as an American bitcoin reserve or regulatory clarity.
Musk and Trump share their overlapping supporters, especially among cryptographic investors and conservative voters. However, Musk’s attacks on Trump’s tax policies and Trump’s threats of reprisals alienate the segments of this base, creating a schism. Articles X reflect this fracture, some users supporting Musk’s budgetary criticism and others defending Trump management.
The Musk-Trump quarrel, although brief, underlines the fragility of cryptographic markets with high-level conflicts and the growing interaction between politics, social media and finance. The gap between Musk’s libertarian vision and technological vision and populist approach and focused on Trump’s state could have lasting effects on cryptographic policy, market stability and political alignments.
