Bitcoin and altcoins are in turmoil: Trump and Elon Musk's tension shook the market.

Cryptocurrencies, especially Bitcoin, are experiencing a decline due to the increasingly escalating tension between U.S. President Donald Trump and Tesla’s billionaire CEO Elon Musk. As the two individuals accuse each other with harsh words, the rising tension has unsettled investors. Bitcoin, which was trading above $105,000, has pulled back to $100,000. Deeper declines have been observed in Ether and other altcoins.

How did the events start?

Tensions between the two figures quickly escalated after a dispute over the “One Big Beautiful Bill Act” bill supported by Trump. The bill in question includes provisions such as increasing defense spending while reducing incentives for electric vehicles led by Tesla. Musk, who harshly criticized the bill, claimed that the federal budget deficit would increase by $2.5 billion due to this bill.

In response to Musk’s criticisms, Trump accused Musk of having “Trump derangement syndrome” and threatened to cancel government contracts with Musk’s companies. Additionally, he withdrew the nomination of Jared Isaacman, whom Musk had proposed as NASA administrator.

Finally, Musk made a striking claim in response to Trump’s reactions by saying, “It’s time to drop the big bomb now.” The billionaire entrepreneur wrote that Trump’s name appeared in documents linked to Jeffrey Epstein and claimed that these documents had not been released for this reason.

Musk said, “If it weren’t for me, Trump would have lost the election,” while calling for Trump’s impeachment. On the other hand, Trump’s former advisor Steve Bannon called for Elon Musk’s deportation.

Historical Loss at Tesla

Adverse weather led to the liquidation of over $800 million in leveraged positions in cryptocurrencies within the last 24 hours. The declines were not limited to cryptocurrencies alone. Elon Musk’s company Tesla saw $150 billion wiped off its market value, marking the largest loss in the company’s history. Donald Trump’s company Trump Media recorded an even sharper percentage drop, closing the day down 8%.

Published: June 6, 2025 00:51