Bitcoin Threatens $100K, Crypto Losses Grow as Musk/Trump Feud Goes Nuclear

TL;DR

• Bitcoin dropped below $101K, sliding over 4% as the Trump–Musk feud escalated.
  
• Altcoins and crypto stocks also plunged, with SOL and SUI losing over 7%.
  
• Tesla shares fell 14% as Elon Musk fired back at Trump with Epstein accusations and threats to pull federal contracts.
  

The cryptocurrency market turned sharply lower late Thursday, with Bitcoin (BTC) dropping more than 4% to $100,500. This marked its first serious threat to the five-digit range in over a month. The downturn followed a dramatic escalation in the feud between U.S. President Donald Trump and Tesla/SpaceX CEO Elon Musk, whose public fallout is now weighing heavily on investor sentiment.

While traditional equities markets were already jittery, crypto bore the brunt of the news cycle as fears grew that retaliatory policy or regulatory shifts could disrupt digital assets.

Trump-Musk Fallout Turns “Nuclear”

What began as a disagreement over the Republican-led budget and spending plan — referred to by Trump as the “Big, Beautiful Bill” — quickly devolved into a personal, highly public spat.

Speaking Thursday, Trump claimed Musk had “gone crazy” and threatened to revoke government contracts with all Musk-led entities, including SpaceX and Tesla. Musk responded on X (formerly Twitter) by accusing Trump of ties to the Jeffrey Epstein files, calling for his impeachment, and promising to decommission Dragon spacecraft.

Major Altcoins and Crypto Equities Tumble

The broader crypto market mirrored Bitcoin’s dip, with the CoinDesk 20 Index shedding over 5%. Notably:

• Solana (SOL) and Sui (SUI) each fell over 7%.
  
• Coinbase (COIN) shares dropped 4.6%.
  
• MicroStrategy (MSTR) declined by 2.4%.
  
• Miners like MARA Holdings (MARA), Riot Platforms (RIOT), and Core Scientific (CORZ) posted 5% losses.
  

Thursday’s Market Recap

Circle’s IPO Adds More Volatility

Amid political drama, the long-anticipated IPO of Circle (CRCL) added another layer of volatility. The company, best known for its stablecoin USDC, surged from $31 to over $100 before closing at $83.

Crypto veterans were quick to draw comparisons to Coinbase’s 2021 IPO, which famously marked a short-term top for that cycle. While optimism for Circle’s future remains strong, traders are wary of another post-IPO retracement.

Bitcoin’s Technical Picture Turns Cautious

Analysts monitoring BTC’s movement noted a sharp breakdown through $104K support, with a failed attempt to bounce at $102,300. If the $100,000 psychological barrier breaks, next support lies near $96,500, while resistance now sits near the former support line at $104,800.

The ascending channel Bitcoin had held since late May is showing signs of weakness, though it has not yet collapsed.

Is Crypto Still a Hedge Against Chaos?

While the past year has seen growing belief that Bitcoin may serve as a hedge against political or financial chaos, Thursday’s events show that crypto is not immune to macro sentiment shocks. Institutional confidence may remain, but retail traders appear increasingly reactive to headline risk.

Whether this feud marks a temporary dip or signals the beginning of a broader risk-off period remains to be seen. But what’s clear is that the intersection of politics and crypto is becoming more volatile than ever.

Conclusion

The Trump–Musk confrontation has become more than a political spat—it now casts a shadow over investor confidence across both traditional and crypto markets. With regulatory risk, executive fallout, and stock volatility all rising, digital assets are being tested as a resilient asset class in a high-stakes environment.

As Bitcoin flirts with the $100,000 line, and as market leaders like Coinbase and Circle find themselves at critical junctures, the days ahead could redefine sentiment in the crypto space.