A storm is brewing at the top—and this time, it’s not just political. A dramatic fallout between two of the world’s most influential figures, Donald Trump and Elon Musk, has triggered ripples far beyond their egos. What started as a seemingly strategic alliance in the run-up to the 2024 U.S. elections has devolved into a public showdown with massive consequences for the financial markets—especially crypto.
From Strategic Allies to Political Rivals
During Trump’s 2024 reelection campaign, Elon Musk was tapped to lead the Department of Government Efficiency (DOGE)—a nod to both bureaucracy and meme culture. Their partnership symbolized a curious blend of political force and tech disruptiveness. But things didn’t last.
Insiders say policy disagreements, clashing egos, and Musk’s increasing independence led to the rupture. The feud went public through a series of blistering tweets and subtle jabs across social media and media appearances, where Musk distanced himself from Trump’s agenda and Trump, in turn, fired back by criticizing Tesla and hinting at tax investigations.
Market Meltdown: Finance Takes a Hit
The Trump–Musk clash wasn’t just tabloid fuel—it had real consequences in the financial world:
- Tesla (TSLA) plummeted by 14 percent, wiping out over 150 billion dollars in market value and slashing 26.6 billion from Musk’s net worth.
Sources: axios.com, thedailybeast.com - Trump Media & Technology Group (TMTG) saw an 8 percent drop, costing Trump approximately 202 million dollars in personal value.
Source: thedailybeast.com - $TRUMP, the meme coin unofficially linked to Trump’s online persona, crashed 12 percent, resulting in nearly 900 million dollars in total losses.
Source: thedailybeast.com
Crypto’s Shockwave: From Bitcoin to Meme Coins
The crypto world, always alert to social and political tremors, felt the impact immediately.
- Bitcoin (BTC) dropped 1.7 percent, landing around 102,000 dollars. While not catastrophic, the dip marked a sharp deviation from its bullish trend.
Sources: cryptoticker.io, cointelegraph.com - Dogecoin (DOGE), long backed by Musk, suffered a 12 percent nosedive, falling to 0.18 dollars. The memecoin’s high correlation with Musk’s public image amplified its vulnerability.
Source: businessinsider.com - Altcoins like Ethereum (ETH), XRP, and Solana (SOL) also bled red, with losses ranging from 5 to 7.25 percent.
Sources: kucoin.com, cointribune.com
In an ironic twist, the chaos gave birth to a new memecoin: Kill Big Beautiful Bill (KBBB). Launched on Solana, the token soared to an eight-figure valuation before crashing within hours—proving again how rapidly sentiment swings in crypto.
The Tweets That Sparked It All
While some of the tweets have since been deleted, screenshots and reposts confirm the timeline:
- Elon Musk posted: “Government needs innovation, not imitation. I’m not here to be anyone’s puppet. Efficiency doesn’t mean allegiance.”
- Trump responded on Truth Social: “Tesla’s best days are behind them. Maybe the IRS should take a closer look at Elon’s adventures.”
These posts quickly went viral, drawing reactions from crypto influencers, analysts, and investors. The resulting FUD (fear, uncertainty, and doubt) created a domino effect across the digital asset market.
Final Thoughts: The Cost of Ego in a Connected Economy
In a decentralized world, the centralized influence of billionaires still holds immense power. The Musk–Trump feud shows just how quickly personal drama can become macroeconomic reality. For traders, holders, and institutions, it’s a reminder that in crypto, sentiment moves as fast as code.
The next time two titans clash, don’t just watch the headlines—watch your portfolio.
News Highlights
- Conflict Between Elon Musk and Donald Trump
The public confrontation between Elon Musk and Donald Trump has triggered a significant decline in financial and cryptocurrency markets. Shares of Tesla and Trump Media & Technology Group have dropped considerably, while cryptocurrencies such as Dogecoin and $TRUMP have suffered notable losses. - Interest Rate Cut by the ECB
The European Central Bank announced a 25 basis point cut in interest rates, bringing them down to 2%, the lowest level since December 2022. This measure aims to keep inflation close to the 2% target. - Circle’s Successful Stock Market Debut
Circle, the issuer of the USDC stablecoin, debuted on the New York Stock Exchange with a 168% increase in its share price, reaching a market capitalization of over $19 billion. This success reflects growing institutional interest in stablecoins as a means of payment and store of value. - New Stablecoin Launched by Société Générale
Société Générale, through its subsidiary SG-Forge, announced the launch of a new stablecoin called USD CoinVertible (USDCV), pegged to the US dollar and available on the Ethereum and Solana blockchains. This initiative aims to provide a regulated and secure alternative for institutional and retail investors in Europe. - Investigations into Crypto-Related Scams
Spanish authorities have launched investigations into alleged cryptocurrency-related scams:
- Six former players of Sevilla FC are implicated in a suspected NFT and crypto scam through the company Shirtum Europa S.L.U., which allegedly raised nearly three million euros without delivering the promised platform.
- Two brothers from Elda have been prosecuted for a pyramid scheme linked to the company Generación Zoe, which allegedly raised four million euros through promises of high returns on crypto investments.
