Trump–Musk Feud Roils Markets as Bitcoin Slips Below Key Support

The crypto market faced a wave of selling pressure Thursday as a highly public spat between President Donald Trump and tech billionaire Elon Musk sent shockwaves through financial markets, with Bitcoin teetering near the $100,000 threshold.

Bitcoin (BTC) dropped to approximately $100,500, shedding more than 4% over the day, while the broader CoinDesk 20 Index fell over 5%, reflecting mounting investor anxiety. The digital asset space was hit broadly, with top altcoins like Solana (SOL) and Sui (SUI) losing more than 7%.

Crypto stocks mirrored the downturn. Shares of Coinbase (COIN) slid nearly 5%, while major bitcoin holders and mining firms like MicroStrategy (MSTR), Marathon Digital (MARA), and Riot Platforms (RIOT) posted declines ranging from 2% to 5%.

The downturn coincided with a political escalation between Musk and Trump, who traded public jabs after disagreements over a proposed tax and spending bill. Trump threatened to reassess federal partnerships with Musk-affiliated companies, prompting Musk to accuse the president of corruption and even push for impeachment.

Adding to the volatility, Circle (CRCL) — the company behind the USDC stablecoin — went public on the New York Stock Exchange. The IPO opened at $31 and closed at $83 after a high of $104, evoking parallels to Coinbase’s 2021 debut, which preceded a sharp market correction.

As political risk collides with investor exuberance, crypto markets are entering uncertain territory. While bitcoin remains near historic highs, the mood is shifting — fast.