TL;DR
- Bitcoin dropped ~4%, sinking toward $100,500, amid growing tension between Trump and Musk
- CoinDesk 20 index plunged ~5%, with SOL and SUI tumbling over 7% and crypto stocks like Coinbase and miners under pressure
- Feud escalated publicly, with Musk and Trump trading accusations—leading to heightened market volatility
Cryptocurrency markets sharply turned red Thursday after an explosive public feud between President Trump and Elon Musk. Bitcoin fell below $101K, shedding roughly 4%, while the CoinDesk 20 index dropped more than 5%, and crypto-adjacent stocks like Coinbase, MicroStrategy, and major miners also slid .
A Political Showdown Rattles Sentiment
What started as Musk’s criticism of the GOP’s One Big Beautiful Bill—condemned for rampant “pork”—erupted into a personal attack when Trump called Musk “crazy” and threatened to revoke EV mandates, subsidies, and contracts. Musk fired back, accusing Trump of links to the Epstein scandal and endorsing calls for impeachment. The barrage visibly rattled investors .
Widespread Market Ripples
- Bitcoin plunged ~4%, closing near $100,500 on Thursday
- CoinDesk 20 index—tracking top cryptos—fell around 5%, with SOL and SUI leading losses
- Coinbase (COIN) dropped 4.6%, MicroStrategy (MSTR) slid ~2.4%, and miners like MARA, RIOT, and Core Scientific plunged ~5%
- Broader trade headlines, including Trump’s tariff threats, further amplified risk-off sentiment
Market Decline Metrics
| Asset | Movement |
| Bitcoin | ~$100,500 (↓4%) |
| CoinDesk 20 Index | ↓5% |
| SOL / SUI | ↓7%+ |
| Coinbase (COIN) | ↓4.6% |
| MicroStrategy (MSTR) | ↓2.4% |
| Crypto Miners (MARA/RIOT/CORZ) | ↓5% |
CoinDesk 20 index data, stock exchange prices
Why It Matters
- The incident highlights crypto’s fragility to political drama
- Public feuds involving key figures can trigger rapid asset swings across markets
- Bitcoin’s move below $100K marks a key psychological level—failure to hold it could deepen the drop
Inside the Musk–Trump Dispute
The public skirmish escalated dramatically on Thursday: Musk attacked Trump’s spending bill, Trump countered by criticizing Musk’s influence and threatening business consequences, Musk retaliated with heavy accusations, and Tesla stock plunged around 14%. Their digital volley set off flashes of meme-driven frenzy, “popcorn” emojis, and growing investor unease .
Concurrent Risk Factors on the Table
- The Circle IPO (CRCL) saw an initial spike above $100 before settling near $83—recalling crypto’s 2021 highs
- Ongoing tariff and trade tensions—sparked anew by Trump—add macroeconomic strain to already jittery markets
Outlook: Eyes on $100K Support
Short-term: Volatility will likely persist as social media jabs and headline news players out. Keep your watchlist on $100K—losing that levelcould feed further sell-offs toward $95K.
Medium-term: Market stability could return if Musk–Trump stage their public feud or macro conditions cool—particularly from key variables like Fed commentary or trade policy clarity.
Conclusion
Thursday’s sell-off brings home a critical lesson: crypto is vulnerable to unpredictable political firestorms. Bitcoin, crypto equities, and tokens dropped across the board—not due to economic fundamentals, but headline dramas. The market’s long-term upside remains viable—but short-term navigation will require vigilance, especially as heavyweight influencers clash online.
