Key Takeaways
- Elon Musk and Trump’s fight escalates following a disagreement over policies such as spending and tariffs.
- Crypto analysts hint at further market crashes if the war continues, as the market suffers a 5% decline.
- The Bitcoin price could suffer a further decline towards $96,000 if the war between Elon and Trump continues.
“Friends turning foes” as the public feud between Donald Trump and billionaire Tech CEO Elon Musk takes a new turn on June 5, 2025, leading to a massive crash in Tesla stock and the crypto market facing a significant crash.
This crash in the market has led to cascading liquidations across many exchanges as the price of Bitcoin briefly crashes towards a region of $100,000, dragging many altcoins towards a lower price point.
The feud between the U.S. president and Tesla/SpaceX CEO Elon Musk became serious due to huge disagreements over political policies, proposed tariffs, and spending plans. Elon Musk was not in agreement with these plans, stating that such policies and spending could impact the economy and potentially lead to a recession due to tariffs.
On the other hand, Trump has retaliated, calling Elon “crazy” and threatening to terminate the contract with Musk’s companies, which would save billions of dollars for the U.S. economy, as Musk plans to shut down his SpaceX Dragon spacecraft.
While the rift between Elon and Trump has persisted, how has the crypto market reacted from experts and traders who have maintained a strong market sentiment to the upside over the past few weeks?
Market Reaction To Elon vs Trump Fight
Cryptodoc has analyzed the current situation between Elon Musk and Donald Trump, as they believe this conflict will have a greater impact on the crypto market and stock than many people on X perceive as a minor rift that will be settled.
A fight that started behind closed doors has escalated beyond many, as these influential figures control a large number of retailers in the market and wield significant influence, as seen with Bitcoin, altcoins, and Tesla stocks suffering severe market crashes in the last few days.
While Elon and Trump continue their spat, the crypto market will suffer crossfire, as was seen with Bitcoin crashing, and could have a significant effect on the overall market sentiment in the coming days and weeks.
Finally, the Trump-Elon war has led to a market crash of over 5%, resulting in liquidations across the crypto market as a result of panic selling from traders who have access to the overall situation and believe these disagreements will cause more damage if they stay longer in the market.
Crypto investors and traders will continue to monitor how events unfold and decide in the coming days whether to invest in the crypto market.