Crypto Market Plunges Amid Trump-Musk Feud
The crypto market took a hit on Friday, June 6, with a 5% drop over 24 hours. Rising tensions between President Trump and Elon Musk have shaken the crypto market. Here’s a closer look at the situation.
the total crypto market cap fell to $3.29 trillion, down from $4.1 trillion the previous day. The Crypto Fear & Greed Index also dropped, signaling increased market fear. Bitcoin prices dipped 3.1%, while Ethereum saw a 7.5% decline. Other major altcoins like Solana, XRP, and BNB each lost about 5%. Nearly $986 million in crypto positions were liquidated, a notable increase from the previous day.
The conflict began when Musk resigned from the Department of Government efficiency and criticized Trump’s spending bill. Trump responded by revoking a NASA nomination for Musk’s associate and threatened to cut government contracts for Musk’s businesses. The feud escalated further when Musk accused Trump of ties to the Jeffrey Epstein files and called for his impeachment. Trump labeled Musk as “crazy.”
As an inevitable result, Tesla shares dropped over 14%, and SpaceX announced plans to decommission its Dragon spacecraft. Dogecoin, heavily influenced by Musk’s actions, plummeted nearly 20%. Cryptocurrency-related stocks also suffered losses.
Political uncertainty continues to impact the crypto market. On the decentralized prediction platform Polymarket, traders assign a 10% chance of Trump’s impeachment by 2025. With macro risks on the rise, market volatility may persist in the coming days.
