Musk-Trump Tension Sparks Crypto Bloodbath as Tesla Tanks 14%

Market chaos erupts as two billionaire egos collide—digital assets caught in the crossfire.

Tesla's nosedive triggers sector-wide panic, proving once again that crypto volatility laughs at traditional 'safe' investments.

When the sharks fight, the minnows bleed red—welcome to decentralized finance, where the house always wins.

Musk Swipe at Trump Adds Fuel to Market Volatility

Tensions escalated further when Musk replied “Yes” to a post on X calling for Trump’s impeachment. The remark drew immediate attention, although any such effort is considered politically impossible, as Republicans currently hold majorities in both chambers of Congress.

Yes https://t.co/rqRsX8B4Hg

Markets quickly reflected the fallout. Bitcoin dipped to $100,783 on Thursday before recovering above $102,700. Over $324m have been liquidated in Bitcoin longs in the last 24 hours, according to Coinglass data. The broader crypto market fell nearly 5% during the same time.

The $TRUMP meme coin, which had surged during the peak of their alliance, slid 10%. Analysts say Musk’s influence in the crypto space, combined with the political uncertainty, has introduced fresh instability into an already volatile market.

Tesla Plunges as Rift With Trump Threatens Federal Support

Tesla shares, meanwhile, suffered a sharper decline. The stock closed 14% lower on Thursday and has fallen 16% since Musk began attacking Trump’s domestic policy bill last week.

The market was hit hard by the Trump and Musk issues.

But in fact, the impact of these issue is unlikely to have a significant impact on the crypto market. Just, whales used this issue to liquidate their long positions.

NASDAQ fell due to Tesla, and this impact may not be…

It now trades roughly 33% below where it stood on Inauguration Day, showing growing fears that the feud could jeopardize billions in federal subsidies and contracts vital to Tesla’s long-term prospects.

Until recently, Musk had served as a key informal adviser to Trump, helping shape major policy decisions and frequently representing the administration abroad.

His sudden departure from that inner circle has left a noticeable void in tech-policy alignment, with markets now unsure of how the administration will proceed on key issues such as electric vehicles and space infrastructure.

Adding to the uncertainty, Musk has hinted at launching a new political movement altogether. That possibility, along with the risk of a regulatory reversal or funding pullback, has left investors bracing for a more hostile environment. And that’s not just for Tesla, but for the broader tech and crypto sectors that have often moved in tandem with Musk’s influence.

The clash has become more than a political sideshow. It is a rare case of personality-driven politics colliding with market fundamentals. For now, both crypto and Tesla appear firmly caught in the crossfire.