Crypto Market Tumbles as Trump–Musk Feud Escalates, Bitcoin Nears $100K
A political clash between U.S. President Donald Trump and Tesla CEO Elon Musk spiraled out of control Thursday, dragging crypto markets sharply lower and shaking investor sentiment across tech and digital assets.
Bitcoin (BTC) slipped more than 4% to around $100,500 late in the U.S. trading session, threatening to fall below the six-figure mark for the first time in nearly a month. The CoinDesk 20 Index — which tracks the largest digital assets excluding memecoins, exchange tokens, and stablecoins — fell over 5% during the same period.
Several top altcoins took bigger hits. Solana (SOL) and Sui (SUI) were among the worst performers, each shedding over 7%. Crypto-related equities followed suit: Coinbase (COIN) dropped 4.6%, while MicroStrategy (MSTR) fell 2.4%. Major mining firms such as Marathon Digital (MARA), Riot Platforms (RIOT), and Core Scientific (CORZ) each lost around 5%.
The sell-off intensified as Trump and Musk’s dispute — initially centered on the GOP’s sweeping tax-and-spending package — turned personal. The president accused Musk of having “gone crazy” and threatened to revoke federal contracts tied to SpaceX, Tesla, and other Musk-led firms.
Musk, in response, posted a series of incendiary claims, including accusations about Trump’s ties to the Jeffrey Epstein files. He also endorsed calls for the president’s impeachment in favor of Vice President J.D. Vance. Tesla (TSLA) shares plummeted over 14% on the day.
The meltdown coincided with the highly anticipated IPO of Circle (CRCL), issuer of the USDC stablecoin. Despite a euphoric debut — opening at $31 and surging above $100 before closing at $83 — Circle’s listing stirred memories of Coinbase’s 2021 IPO, which famously marked a cycle top for digital assets.
As political tensions mount and historical echoes grow louder, investors appear increasingly cautious — watching not just prices, but the headlines shaping them.
