How it all started…
During a press conference on May 30th, Trump presented his close friend Elon Musk with a golden key to the White House, praising his contributions to the current administration and stating that there is no one like him. The press conference was intended to mark the end of Musk's 130-day term as a special government advisor, which resulted in the Department of Government Efficiency (DOGE) reducing excess federal spending. However, their positive relationship quickly deteriorated into a bitter public split when they began shading each other on social media.
It all began when Elon Musk stated publicly on his account that he was opposed to Trump's tariffs, fearing that they would increase the national debt over the next ten years and describing them as a disgusting abomination. Although there were some disagreements during Musk's tenure, this is the first time he has publicly stated that he does not approve of Trump's work. He went on to say that Trump's tariffs will significantly increase the already massive budget deficit to $2.5 trillion, burdening Americans with crushingly unsustainable debt. A few days later, things quickly escalated.
Trump appears to have seen the tweet and responded with disappointment. He also stated that he could easily have won the presidential race without Musk's assistance and that Musk was wearing thin. He stated that he had asked Musk to leave the administration and revealed his EV mandate, which forced everyone to buy an electric car that no one wanted.
Musk did not take it lightly, writing a slew of tweets in response to Trump's statements. First, he suggested that it is time to form a new political party in America and pinned that tweet for several days. He also dropped a major “bomb” when he revealed that Trump is in the Jeffrey Epstein files, a well-known convicted sex offender in the country. Musk also made several tweets suggesting that the current Vice President, JD Vance, should succeed Trump as the new President. Finally, he responded to a social media blogger who stated that Trump has 3.5 years left as president, but he will be around for more than 40 years.
The feud continues, with Trump responding once more, saying that he does not mind Elon turning on him but that he should have done so months ago, as he believes that the bill he is creating now is "one of the best bills ever presented" to Congress. However, because there are anti-ICE (Immigration and Customs Enforcement) protests in Los Angeles and Trump's administration is shifting its focus to the issue, Musk has unexpectedly extended an olive branch, stating that he regrets some of the posts he made about Trump and that they went too far.
What are the impacts on the crypto world?
The feud between the two figures threw the crypto world into chaos, surprising many in the industry. Many people know that the two figures have been "best buddies" for a long time. What happened between the two has an impact on major cryptocurrency prices in the market.
The feud between the U.S. president and the Tesla CEO has caused a 5.1% drop in crypto market capitalisation. As a result, many major cryptocurrencies, such as Dogecoin and Ethereum, have experienced significant losses.
The most obvious indicator is Bitcoin's price. Investors who went long on Bitcoin suffered significant losses in the 24 hours following the feud, with the cryptocurrency falling nearly 3%. According to CoinMarketCap data, the cryptocurrency price reached a high of $105,000 before plummeting to $100,000 in just hours. The drop caught many traders off guard, resulting in the liquidation of approximately $308 million in long positions during the same period.
According to Coinglass data, over 200,000 traders were liquidated during the period, with total liquidations approaching $1 billion, indicating a market reaction. Experts believe that the ongoing feud will have a long-term impact on the US economy and may cause market fears.
Does it impact the two figures?
Yes, it affected both of them. Musk's feud with Trump has an impact on his company, Tesla. According to reports, Tesla's shares fell by about 14% at market close, wiping out approximately $150 billion of the company's value as the feud became public. Many believe this occurred because Trump suggested reducing government subsidies and contracts, of which Tesla and SpaceX have reaped significant benefits. Meanwhile, Musk threatened to decommission the SpaceX spacecraft, which NASA uses for transport missions.
For Trump, this has an impact on his political position. Many of his "supporters" come from the tech industry, which is heavily influenced by Musk. What happened between him and Musk also contributed to a "bad" image of him as president and his administration, bolstered by Musk's numerous accusations against him, including his appearance in the Jeffrey Epstein files. Many people believe that this will change the way the mainstream media perceives him, as Musk reportedly spent $250 million to support Trump's successful 2024 election campaign and make him the largest individual donor. Many people believe that this could affect the Republican Party in America, as two of the party's most powerful figures are feuding.
Is the feud true or simply just a performance?
However, many also believe that the feud was staged by both parties due to their quick reconciliation. Many people also stated that if this feud were real, it would be even worse. Musk could ban Trump from X, and Trump could use his position to target Tesla. Instead, we get Musk quickly apologising, leading many to believe that something is going on behind the scenes. But, if this is true, it could be the most creative performance of the year, and we are watching it as the audience. Whether it is true or not, what happened is certain: if the feud continues, the crypto market will most likely remain volatile.
