Trump and Musk Clash Sends Bitcoin Tumbling to $100,000

The spat between U.S. President Donald Trump and billionaire Elon Musk has intensified pressure on the leading cryptocurrency. Bitcoin’s price fell nearly 3%, approaching $100,000.

On June 5, Musk criticized Trump’s tariff plans, sparking a conflict.

The Trump tariffs will cause a recession in the second half of this year https://t.co/rbBC11iynE

— Elon Musk (@elonmusk) June 5, 2025

He stated that the president’s initiative “will cause a recession in the second half of this year.”

Trump threatened on Truth Social to cancel Musk’s government contracts. This would save the budget “billions of dollars,” he claimed.

Musk responded with a message about withdrawing SpaceX’s Dragon spacecraft from service. He later retracted this statement.

At the time of writing, Tesla shares under the ticker TSLA are trading at $284.7, having fallen 14.26% in a day, according to Google Finance.

State of the Crypto Market

Due to the conflict between two of the most influential figures in the U.S., Bitcoin dropped from $105,915 to $100,500. At the time of writing, the asset is trading at $103,200, according to CoinGecko.

The decline led to the liquidation of long Bitcoin positions totaling $341.75 million in a day, according to Coinglass.

The Trump-Musk quarrel also caused a 4% drop in the digital asset market capitalization.

Other cryptocurrencies also showed declines. Ethereum lost 5.6%, XRP — 2.8%, Solana — 3.2%.

The Fear and Greed Index dropped to 45 points, indicating a fear zone.

Back on May 23, the price of the leading cryptocurrency dropped over 3% within an hour following Trump’s threats to impose 50% tariffs on EU products.