Nathan Zylstra
Crypto Markets in Chaos: Trump vs. Musk Showdown Sends Bitcoin Tumbling Below $100K Mark
Crypto sees a sharp selloff as a Trump–Musk feud shakes investors. Bitcoin teeters near $100K, Tesla and Circle IPO roil markets.
- Bitcoin sinks over 4%, hovers near $100,500
- CoinDesk 20 index tumbles 5% in a day
- Tesla shares crash 14% after Musk-Trump spat
- Circle soars on IPO, closes at $83 after brief surge past $100
Is the crypto world spiraling out of control? A sharp war of words between U.S. President Donald Trump and Tesla CEO Elon Musk has sent cryptocurrency prices into a tailspin, erasing billions in value and heightening fears of a “crypto winter” resurgence as 2025 begins.
Bitcoin Sees Red as Billionaires Brawl
As Thursday drew to a close, Bitcoin plunged more than 4%, landing at $100,500—its lowest in a month and dangerously close to slipping back into five-digit territory. For investors, the red candlesticks brought haunting flashbacks of previous crashes.
The broader crypto market fared no better. The CoinDesk 20, tracking the top cryptocurrencies by market cap (excluding memecoins, stablecoins, and exchange tokens), slumped over 5% in a matter of hours. Solana (SOL) and Sui Network (SUI) led the losses with drops exceeding 7%. Meanwhile, Coinbase stock nose-dived 4.6%, and both MARA Holdings and Riot Platforms spiraled down 5%.
Tesla Sinks as Circle IPO Adds Fuel to the Fire
Amid the market turmoil, Tesla shares cratered by more than 14%. The sell-off followed a social media storm as Musk and Trump clashed over the fiscal implications of a proposed “Big, Beautiful Bill,” with the President threatening to pull government contracts from Musk, and Musk firing back with allegations linked to the infamous Epstein files.
To complicate matters, stablecoin giant Circle (CRCL) went public on Thursday—a move reminiscent of Coinbase’s breakout IPO in 2021. Circle’s stock skyrocketed out of the gate from $31 to over $100 before volatility yanked it back to a closing price of $83. The initial euphoria added pressure to shaky market sentiment, echoing historical peaks that were followed by steep corrections in the crypto space.
Q: Why is the Trump vs. Musk spat hitting crypto markets so hard?
When two of the world’s most influential figures clash publicly—especially with threats involving government contracts and accusations tied to infamous scandals—investors get spooked. The argument highlights regulatory uncertainty and could influence everything from government crypto policy to tech investments.
Q: How are major crypto stocks performing?
Key crypto-linked equities like Coinbase, MARA Holdings, and Riot Platforms all posted steep losses mirroring the crypto selloff. Tesla, closely tied to both Musk and crypto sentiment, slid by a staggering 14%.
How to Prepare Your Crypto Portfolio for 2025 Volatility
- Diversify: Avoid overexposure to Bitcoin alone; consider stablecoins and blockchain tech stocks.
- Stay Informed: Follow major news on Reuters, Bloomberg, and reputable crypto blogs.
- Set Stop-Losses: Lock in gains or limit losses as wild swings become more likely.
- Secure Funds: Store assets off exchanges when possible for added safety amid market chaos.
Q: What’s next for the crypto market—recovery or further slide?
Seasoned analysts suggest more volatility ahead, especially if the Trump-Musk saga drags on or spills into regulatory action. Investors should brace for turbulence while keeping a close eye on both political and market developments.
Stay ahead of crypto’s twists and turns—check your strategy, follow the facts, and don’t get caught flat-footed!
Actionable Checklist:
- Review portfolio and rebalance as needed
- Set up alerts for breaking crypto news
- Monitor equities linked to crypto and tech giants
- Consider stablecoins and alternative assets
- Keep security tight—use hardware wallets where possible
