Trump-Musk Feud Drives Bitcoin Close to $100,000 Mark

A verbal exchange between U.S. President Donald Trump and billionaire Elon Musk has heightened pressure on the leading cryptocurrency. Bitcoin’s price fell nearly 3%, nearing the $100,000 mark.

On May 5, Musk criticized Trump’s tariff proposals, sparking a dispute. He claimed that the president’s initiative would lead to a recession in the latter half of this year.

Trump, in a post on Truth Social, threatened to revoke Musk’s government contracts, stating it could save the budget «billions of dollars.»

In response, Musk tweeted about withdrawing SpaceX from the operation of its Dragon spacecraft, though he later retracted this statement.

At the time of writing, Tesla’s shares, trading under the ticker TSLA, were priced at $284.70, reflecting a 14.26% drop over the day, according to Google Finance.

As a result of the conflict between these two powerful figures in the U.S., Bitcoin’s value fell from $105,915 to $100,500. Currently, the asset is trading around $103,200, according to CoinGecko.

The decline has triggered liquidations of long Bitcoin positions totaling $341.75 million within a single day, as reported by Coinglass.

The altercation between Trump and Musk also resulted in a 4% dip in the total market capitalization of digital assets.

Other cryptocurrencies showed declines as well, with Ethereum down 5.6%, XRP dropping 2.8%, and Solana declining by 3.2%.

The Fear and Greed Index fell to 45 points, indicating a state of fear in the market.

As a reminder, on May 23, the price of the leading cryptocurrency lost over 3% within an hour following Trump’s threats to impose a 50% tariff on EU products.