The conflict between the US President and Elon Musk has led to panic in the crypto market

A sharp public altercation between Donald Trump and Elon Musk has put tangible pressure on the crypto market. Due to the conflict, the bitcoin exchange rate fell from $105,915 to $100,500 overnight, temporarily breaking through the psychological mark of $100,000. At the time of writing, the first cryptocurrency is trading near $103,200, CoinGecko data shows.

The reason for the quarrel was Musk’s statement of June 5: he called Trump’s tariff policy a direct threat to the economy and predicted a recession. In response, the former president threatened to cancel all government contracts with the billionaire’s companies, including SpaceX and Tesla, allegedly to save the budget.

Musk reacted emotionally, promising to suspend the operation of Dragon ships. He later deleted the post and said that he “will not interfere with the state missions”. Nevertheless, the markets reacted negatively. Tesla shares fell 14.26% to trade at $284.7, according to Google Finance.

Against the backdrop of the scandal, the crypto market capitalization dropped by 4%. Ethereum lost 5.6%, XRP – 2.8%, Solana – 3.2%. According to Coinglass, $341.75 million in long bitcoin positions were liquidated overnight.

Earlier, on May 23, the crypto market had already reacted with a fall to Trump’s trade rhetoric: his statement about 50% duties on imports from the EU dropped bitcoin by 3% in an hour.