The ongoing feud between President Trump and Elon Musk sent shockwaves through the crypto market, leading to a massive liquidation of Bitcoin and other cryptocurrencies.
A Twitter War and Market Mayhem
The drama started with Musk’s outspoken criticism of a new spending bill, calling it a “disgusting abomination.” Trump retaliated with threats to cut Musk’s government contracts and subsidies. Musk then escalated the situation by claiming Trump’s name appeared in Jeffrey Epstein files.
This public spat triggered a significant drop in Tesla’s stock price (down 14%), and a ripple effect across the markets. Bitcoin took a major hit, plummeting from a high of $105,733 to $100,900 within hours.
Millions Liquidated
The fallout resulted in a staggering $621.55 million in crypto liquidations in just four hours, according to Coinglass. This highlights the market’s sensitivity to high-profile political and business conflicts.
The Bigger Picture
The Republican spending bill at the heart of the dispute is estimated to add trillions to the national debt over the next decade. Musk’s opposition, and Trump’s subsequent response, created a perfect storm of uncertainty that shook investor confidence.
Disclaimer: This information is for general knowledge and shouldn’t be considered investment advice. Always do your research before investing in any cryptocurrency.
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