Musk vs. Trump: Chaos on the crypto market! Who is ahead?

Musk vs. Trump: Chaos on the crypto market! Who is ahead?

On June 16, 2025, the crypto market shows clear reactions to the public dispute between Elon Musk and Donald Trump. Figures like Musk and Trump have a significant impact on sentiment in the cryptocurrency industry. While Musk is known for his provocative tweets, particularly regarding Dogecoin, some observers are criticizing Trump for possible attempts to manipulate the crypto market. A current survey by BTC-ECHO among over 4,000 participants shows that almost half of those surveyed expect price turbulence.

Despite the intense dispute between Musk and Trump, there were no major price movements in the crypto market. Musk subsequently expressed regret over some of his comments regarding Trump, saying they went too far. The situation escalated on June 5, 2025, when the Bitcoin price fell to around $100,300 due to the public controversy. The decline came as Musk criticized Trump's proposed tax and spending package, known as the One Big Beautiful Bill Act (OBBBA), as fiscally irresponsible.

Political tensions and their consequences

Trump, the former president of the United States, reacted sharply to Musk's criticism and threatened to cut subsidies and contracts for Tesla's subsidiaries SpaceX and Starlink. In this tense atmosphere, Musk also made allegations against Trump, particularly regarding the Epstein files. These developments not only led to a decline in the price of Bitcoin, but also to a significant fall in Tesla shares by more than 14%. Within a few hours, the Bitcoin price fell from over $105,000 to under $101,000. In a very short period of time, liquidations worth around $621 million were recorded in the crypto market.

The OBBBA bill, passed in the House of Representatives on May 22, 2025, provides tax breaks for the wealthy and cuts to social services and could increase the national debt by $2.4 trillion to $5 trillion. Analysts point out that political uncertainty as well as a risk-off mode among investors contributed to this dramatic decline. US stock markets also saw negative reactions: the Dow Jones fell 0.3%, the S&P 500 fell 0.5% and the Nasdaq fell 0.8%.

Outlook and possible investments

However, the uncertainty in the markets could also offer opportunities for risk-taking investors. A potentially interesting investment is currently highlighted in the form of the Solaxy (SOLX) project. This Layer 2 solution for the Solana blockchain is considered promising as it improves Solana's scalability and transaction speed and is currently in pre-sales.

The developments surrounding Musk and Trump show once again how strongly political events can influence the crypto market. Investors must be aware of the risks and opportunities hidden in this dynamic and often unpredictable industry. For more information on the impact of these events on the crypto market, see BTC-ECHO, which reports that... BTC ECHO and also Bitcoinist highlights the importance of the conflict.