Bitcoin fell briefly to $100,000 before quickly rebounding to $103,000 during early trading hours on Friday.
The conflict that unfolds in real time beyond the true society and X was marked by Trump’s threat of revoking federal contracts and subsidies with Musk’s businesses, and his threat of severe refusal to Trump’s own fiscal policy.
The political conflict ignites the sale of cross assets, which wiped out $150 billion from Tesla’s market capitalization and prompted about $308 million in Bitcoin’s long liquidation.
The tension had simmered for several weeks. On June 3, Musk publicly denounced Trump’s domestic spending bill, describing it as X’s “nasty hatred,” escalating from previous policy criticisms.
Trump rebutted the true society, vowing to “end Elon’s government subsidies and contracts,” and labelled the mask “crazy.” Musk responded by insisting Trump’s 2024 election victory, relying on his support, sought Trump to be bounced each and replaced by JD Vance. Late-night social media clashes shattered once-closed partnerships and fostered optimism in the crypto space.
Trump dismissed the influence of Musk, a notable deviation from the once strategic alliance that began during the 2024 campaign and expanded into Musk’s current combined tenure, which led the government’s Department of Efficiency (DOGE).
The feud became stronger on personal territory later that night. Musk accused Trump of betraying the promises of a major campaign, saying, “Time to drop a really big bomb: @Realdonaldtrump is in Epstein’s files. That’s the real reason they’re not publicly available… The truth comes out.”
Musk did not provide evidence, but his remarks accelerated the elucidation of their relationship. This was confirmed publicly when Trump said he “I don’t know if it’s (related) anymore.”
The escalation coincided with a significant recession in risky assets, exceeding $103,000 by the early hours of the morning after urged Bitcoin to sink to $100,400 by 22:00 GMT on June 5th.
Tesla’s 14% reflects market concerns over Trump’s explicit threat to revenue streams related to the government.
SpaceX, which holds a multi-billion-dollar NASA contract, has also emerged as a potential target, but no immediate termination has been confirmed.
Marketwatchers remain wary of whether Trump’s comments will be converted into formal procurement measures or rhetorical. The declaration that Musk’s abolishment Dragon Program could be abolished further encouraged concern, but the operational continuity clause in the NASA contract is unlikely to make such a move without long-term negotiations.
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Bitcoin’s sharp move reveals investors’ sensitivity to political volatility at six-figure valuations following a rapid rebound. According to Coinglas, a long position of $873 million was liquidated within hours, but no full-body chain stress has been recorded.
Metrics including hashrate and replacement spares remain stable, suggesting that the selloff is emotionally driven rather than basic. Encryption The data confirm that while the drawdown reached 4.8% overnight, the psychological $100,000 level attracted strong decline interest, highlighting its role as a perceived support despite its thin liquidity.
The broader crypto market is currently facing a realigned regulatory outlook. In a loud and influential voice in support of deregulation at the federal level and adoption of Bitcoin, Musk is now standing outside Trump’s circle of influence.
The departure of this alliance leaves ambiguity about how the Trump administration approaches crypto policy for the remainder of 2025. Encryption Reports are tracked and Trump’s extremely high on targeted economic retaliation shows a pronounced evolution of the administration’s tone to the tech sector.
Traders are now questioning whether political personality poses greater volatility risks than macroindicators or harving cycles.
Musk warns that Trump’s tariff expansion will cause a US recession later this year, but the market is focusing on whether Bitcoin can sustainably hold six-figure levels under these unpredictable conditions.