Coinbase Shares Drop Amid Bitcoin Volatility Triggered by Musk-Trump Feud

Cryptocurrency markets experienced significant turbulence as tensions between Elon Musk and former U.S. President Donald Trump escalated. Bitcoin, the leading digital asset, saw a sharp 4% decline, dropping to $100,500 and threatening to fall below the $100,000 mark for the first time in weeks. The broader CoinDesk 20 index also suffered, plummeting 5%, with SOL and SUI among the hardest hit, losing over 7% of their value. Publicly traded crypto companies were not spared, as Coinbase shares fell by 4.6% and MicroStrategy slid 2.4%. This market downturn highlights the sensitivity of cryptocurrency prices to high-profile disputes and macroeconomic sentiments. Investors are closely watching for further developments that could impact market stability.

Bitcoin Threatens $100K as Musk-Trump Feud Rattles Crypto Markets

Cryptocurrency markets tumbled amid escalating tensions between Elon Musk and former U.S. President Donald Trump. Bitcoin plunged 4% to $100,500, teetering on the edge of five-figure territory for the first time in weeks. The broader CoinDesk 20 index sank 5%, with SOL and SUI leading losses at over 7%.

Publicly traded crypto firms felt the pressure. Coinbase shares dropped 4.6%, while MicroStrategy slid 2.4%. Mining stocks including Marathon Digital and Riot Platforms suffered 5% declines. The selloff coincided with Tesla's 14% stock plunge after Musk's inflammatory social media posts about Trump.

Market stress intensified as TRUMP threatened to cancel government contracts with Musk's companies, calling the billionaire "crazy." The feud originated from debates about fiscal policy but quickly escalated into personal attacks involving Jeffrey Epstein conspiracy theories and calls for impeachment.

Cathie Wood’s Unusual Crypto Moves: Buys Circle, Sells Coinbase

Cathie Wood made bold cryptocurrency trades on June 5, acquiring shares of newly listed stablecoin issuer Circle Internet Group (CRCL) while divesting from Coinbase Global (COIN). The MOVE aligns with her reputation for long-term bets on disruptive sectors. Circle’s stock surged 235% on its NYSE debut, with Ark Invest purchasing $139 million worth of shares across three ETFs.

Wood’s portfolio adjustments included selling $18 million in Robinhood (HOOD) and $25 million in Roblox (RBLX), alongside smaller exits from Meta Platforms (META), Palantir (PLTR), and Block (XYZ). The aggressive stake in Circle signals growing institutional confidence in stablecoins as a cornerstone of crypto infrastructure.