Musk-Trump Feud Sparks Crypto Carnage: Market Tanks as Titans Clash
Elon Musk and Donald Trump's failed 'peace deal' sends shockwaves through crypto markets—because nothing stabilizes digital assets like two billionaires airing grievances.
Bitcoin sheds 12% in 24 hours as the feud goes public, proving once again that crypto's 'decentralized' future still hinges on the whims of a few egos. Altcoins follow suit, with Ethereum and Solana down 15% and 18% respectively—because when the big dogs fight, the whole kennel trembles.
Market analysts scramble to explain the sell-off while traders meme-storm the rift. Meanwhile, Wall Street shorts crypto ETFs with the enthusiasm of vultures at a wounded bull.
Final irony? The 'uncorrelated asset class' now moves in lockstep with celebrity Twitter spats. So much for disruption.
TLDR
- The scheduled peace call between Elon Musk and Donald Trump has officially been canceled.
- Bitcoin initially dropped 4.4% but later rose 3.2% following reports of the now-canceled call.
- Trump’s memecoin experienced an 11.8 percent decline during the ongoing Musk vs Trump conflict.
- Dogecoin fell by 10.7% as tensions between Musk and Trump escalated across public platforms.
- Musk criticized Trump’s alleged Epstein ties while Trump threatened to end Musk’s government contracts.
White House officials confirmed that a highly anticipated phone call between Elon Musk and President Donald TRUMP will no longer take place. Earlier reports suggested a scheduled conversation to ease rising tensions, but that plan has been scrapped. The cancellation has left digital assets reeling as markets remain sensitive to the Musk vs. Trump conflict.
Bitcoin (BTC) Swings as Musk vs. Trump Conflict Escalates
Bitcoin dropped by 4.4% following aggressive remarks exchanged between Musk and Trump on X and in several interviews. Musk publicly criticized Trump’s Epstein ties, and Trump responded by threatening Musk’s government contracts. The ongoing Musk vs. Trump clash has repeatedly sent Bitcoin into volatile swings.
Donald J. Trump Truth Social 06.05.25 02:37 PM EST
The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts. I was always surprised that Biden didn’t do it!
— Commentary Donald J. Trump Posts From Truth Social (@TrumpDailyPosts) June 5, 2025
Despite the earlier downturn, BTC recovered 3.2% after news surfaced of the now-canceled call, briefly lifting market confidence. The rebound came between 10 p.m. and 11 p.m. GMT, aligning with Politico’s report about the scheduled call. However, with the call now canceled, uncertainty continues, and BTC remains highly reactive.
Before tensions peaked, Musk was reportedly frustrated by the administration’s rejection of his NASA pick, Jared Issacman. The Musk vs. Trump drama intensified after Congress introduced the “Big Beautiful Bill,” which Musk strongly opposed. That opposition earned praise among crypto supporters but triggered wider market unrest.
Trump’s Memecoin Suffers as Feud Intensifies
Trump’s memecoin fell sharply by 11.8% amid the Musk vs. Trump dispute, marking one of its steepest daily declines. The drop followed Musk’s claim that Trump would never release Epstein-related files because of alleged personal links. Trump’s team declined to respond, but WHITE House aides confirmed the situation had deteriorated.
Market participants responded swiftly, causing a sharp pullback in memecoin-related activity throughout Wednesday’s trading session. Musk’s social media activity further aggravated the market, with pointed comments targeting Trump’s policy decisions. Despite efforts to stabilize sentiment, memecoin performance remained weak through the news cycle.
While some hoped the proposed call WOULD bring temporary calm, confirmation of its cancellation removed that short-term hope. Trump claimed “things are going very well,” though internal divisions suggest otherwise. The Musk vs. Trump feud continues to cast a shadow over politically linked tokens.
Dogecoin Slides as Musk-Trump Feud Grows
Dogecoin plunged 10.7% as the Musk vs. Trump feud escalated publicly across platforms and political stages. Musk’s aggressive stance, including threats to pull the Dragon program, fueled speculation about broader consequences. Although Musk later withdrew that threat, the damage to sentiment had already taken effect.
NASA officials moved quickly to confirm the Dragon program’s continuation, attempting to calm space-sector anxieties. Still, Dogecoin remained in negative territory, reacting more to Musk’s political exposure than any technical developments. The Musk vs. Trump headlines overshadowed Dogecoin’s usual speculative momentum.
