The cryptocurrency market declined by 3.1% as renewed public disagreements between entrepreneur Elon Musk and former U.S. President Donald Trump fueled investor uncertainty and volatility.
The drop followed a public clash where Elon Musk voiced criticism of Trump’s political party and a recent debt bill. Donald Trump, in return, directed comments targeting government subsidies. This exchange contributed to heightened market unease.
Investor confidence was visibly unsettled. Assets favored or associated with Elon Musk, notably Dogecoin (DOGE), saw sharper declines compared to major cryptocurrencies Bitcoin (BTC) and Ethereum (ETH), which experienced more modest losses.
The dispute revived memories of a previous public disagreement between Musk and Trump. That clash triggered a 5.1% market drop and resulted in liquidations nearing $1 billion. Analysts cited this precedent as indicating potential for further volatility stemming from the renewed tension.