A high-profile fallout between former U.S. President Donald J. Trump and Tesla and SpaceX CEO Elon Musk has sparked a sharp decline across cryptocurrency markets and Tesla stock prices. The clash, triggered by Trump’s controversial “One Big Beautiful Bill” (OBBB) proposal, has led to widespread market turmoil, with Bitcoin, Ethereum, and Tesla shares all experiencing significant losses within 24 hours.
Trump and Musk’s Fallout: The One Big Beautiful Bill Dispute
The discord between Trump and Musk erupted after Musk resigned from his advisory role in the Department of Government Efficiency (DOGE), where he worked to help trim government spending. The turning point came when Trump introduced the OBBB, aiming to cut taxes and reverse Biden-era green tax incentives while increasing spending on border security and defense. Musk publicly condemned the bill as “disgusting,” accusing supporters of betraying American interests and warning the bill would add $2.4 trillion to the national deficit.
According to Coinglass data, the crypto market saw a sharp decline following the public fallout between Elon Musk and Donald Trump. Over the past 24 hours, BTC dropped more than 3%, and ETH fell over 7%. A total of 227,300 traders were liquidated, with total liquidations reaching…
— Wu Blockchain (@WuBlockchain) June 6, 2025
Tensions escalated further when Musk implied Trump’s involvement in controversial Epstein-related files, intensifying the public feud. In retaliation, Trump suggested government savings could be achieved by canceling all of Musk’s governmental subsidiaries and contracts. The dispute has not only been personal but also highly public, involving a barrage of social media exchanges that have kept investors and the public on edge.
Market Impact: Crypto Prices and Tesla Stock Plunge
🚨 NOW: Tesla shares plummet 17%, losing $100 Billion in market cap. pic.twitter.com/oN4Yhff7Al
— Cointelegraph (@Cointelegraph) June 5, 2025
The repercussions of the Trump-Musk breakup reverberated immediately through financial markets. According to CoinGlass data, Bitcoin (BTC) prices dropped over 3%, while Ethereum (ETH) suffered a sharper fall of more than 7% within just one day. The fallout triggered massive liquidations, with 227,300 traders losing positions worth nearly $1 billion—$892 million of which were long positions.
Tesla shares were hit even harder, plunging 17% and wiping out more than $100 billion from the company’s market capitalization. This dramatic drop reflects investor uncertainty linked to Musk’s weakening political alliances and the broader concerns about government policies affecting innovation-driven companies.
Also Read: Dogecoin Founder Questions Trump’s Tariffs Amid Market Turmoil
What’s Next for Musk, Trump, and the Markets?
The rift between two of America’s most influential figures adds a new layer of volatility to already sensitive markets. Investors will be closely watching how this political and personal conflict evolves, especially as Musk’s companies often intersect with government contracts and regulations. Meanwhile, the crypto community remains wary of how political disagreements might influence digital asset regulation and adoption.
As the situation develops, market participants should brace for continued fluctuations, given the volatile nature of the fallout and its wide-reaching implications across technology, politics, and finance.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
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