Crypto Faces Turmoil Amid Musk and Trump Conflict
The sudden crash in the crypto space coincides with a public fallout between two of the most influential figures in the U.S.: Elon Musk and former President Donald Trump. Their spat—centered around a controversial government spending bill—has added a new layer of uncertainty to already shaky markets.
Bitcoin slipped toward the $100K mark, while Ethereum led the downside among altcoins with a sharp 7% drop. Liquidations in ETH futures alone spiked to $260 million, as open interest fell 5.5%. Bitcoin wasn’t far behind, accounting for over $340 million in long position liquidations as of this morning.
Adding to the tension, Friday’s scheduled options expiry is keeping traders on edge. Spot Bitcoin ETFs also saw outflows of $278 million, a sign that larger players may be exiting or hedging ahead of further volatility.
ETH, DOGE, and Others Join the Slide
Ethereum’s decline follows another rejection at the $2,700 level. The asset dipped to as low as $2,400 earlier today, hitting its lowest level in over a week. Meanwhile, Dogecoin is down 8%, following recent comments from Musk distancing himself from the token. Solana, XRP, and Binance Coin each shed around 4%.
Political Drama Spills Into Markets
The clash between Musk and Trump has stirred up both headlines and markets. Musk has publicly criticized the recent spending proposal making its way through Congress—often referred to as the “Beautiful Bill”—calling it reckless and damaging to the economy.
In response, Trump fired back, threatening to slash federal contracts and subsidies linked to Musk’s companies. That provoked a strong reaction from Musk, who posted:
“In light of the President’s statement about cancellation of my government contracts, SpaceX will begin decommissioning its Dragon spacecraft immediately.”
But it didn’t stop there. Musk then hinted at an even deeper dispute, claiming that:
“Time to drop the really big bomb: Donald Trump is in the Epstein files. That is the real reason they have not been made public.”
Investors Watch Closely
While the crypto market has weathered drama before, the mix of high-profile feuds and uncertain macro conditions is clearly shaking investor confidence. Whether this marks a temporary dip or the start of a broader downturn remains to be seen—but with volatility climbing and political narratives fueling sentiment, all eyes are on what happens next.
Disclaimer: This content does not constitute trading or investment recommendations. It’s essential to conduct your own research before purchasing any cryptocurrency or investing in any services.
