Bitcoin price collapses: Trump and Musk in a power struggle!

Bitcoin price collapses: Trump and Musk in a power struggle!

The Bitcoin price is currently around $106,000, after falling to just under $100,000 in the last few days. This reports bitcoin-2go. The decline is related to a public dispute between US President Donald Trump and Tesla CEO Elon Musk, which weighed on the market in the short term. Musk called for deeper spending cuts and sharply criticized Trump, who responded by calling him “crazy” and questioning government contracts for Musk’s companies.

Things have been tense in the crypto market as Bitcoin fell almost 3% in the last 24 hours and a short-term test of the $100,000 level was expected. The price initially fell from a high of $105,915 to $100,500 before stabilizing at $102,180. During this time, approximately $308 million in long positions were liquidated, reflecting uncertainty among investors. Loud Cointelegraph Other major cryptocurrencies were also affected: Ether (ETH) fell by 7.25%, XRP by 4.35% and Solana (SOL) by 5.20%.

Political tensions and their effects

The political dispute between Trump and Musk not only has personal dimensions, but also has a negative impact on the Bitcoin price. Musk criticized Trump's proposed global tariffs, saying they could trigger a recession. Trump countered by saying that cutting Musk's government contracts would save the US government billions.

The geopolitical situation is also becoming more complex with the US-China trade talks scheduled to take place in London on Monday. Trump was optimistic about the talks, which aim to reduce tensions in the trade conflict. These developments could also have an impact on the financial markets.

Economic data in focus

Significant US economic data is due this week that could influence market activity. The Consumer Price Index (CPI) will be released on Wednesday and is forecast at 2.5%. A low CPI could strengthen expectations of looser monetary policy from the Federal Reserve, while a higher CPI could potentially result in an extended tightening monetary policy, which could negatively impact the crypto market. Thursday's producer price index (PPI), forecast at 2.6% compared to 2.4% last month, as well as weekly initial jobless claims, forecast at 241,000, up from 247,000 claims last week.

Overall, the Bitcoin price remains volatile as investors closely monitor events in both the political and economic spheres. If there is uncertainty, the stability of the crypto market also seems to be in jeopardy.