Nearly $1 billion liquidated as Bitcoin recovers from $100k dip during Elon Musk, Donald Trump breakup

Trump countered connected Truth Social, vowing to “terminate Elon’s Governmental Subsidies and Contracts” and labeling Musk “crazy.” Musk responded by asserting Trump’s 2024 predetermination triumph relied connected his backing, calling for Trump to beryllium impeached and replaced with JD Vance. The late-night societal media clash shattered their once-close partnership, which fueled optimism successful the crypto space.

Trump dismissed Musk’s power arsenic having “worn thin,” a notable departure from their once-strategic confederation that began during the 2024 run and extended into Musk’s now-concluded tenure starring the Department of Government Efficiency (DOGE).

The feud intensified into idiosyncratic territory aboriginal that night. Musk accused Trump of betraying cardinal run promises and stated, “Time to driblet the truly large bomb: @realDonaldTrump is successful the Epstein Files. That is the existent crushed they person not been made public… the information volition travel out.”

While Musk did not supply evidence, the remarks accelerated the unraveling of their relationship, which was confirmed publically erstwhile Trump stated, “I don’t cognize if we volition [have a relationship] anymore.”

The escalation coincided with a marked downturn successful hazard assets, prompting Bitcoin to descend to $100,400 by 22:00 GMT connected June 5 earlier retracing supra $103,000 by aboriginal morning.

Bitcoin dips to $100k (Source: TradingView)

Tesla’s 14% plunge reflected marketplace concerns implicit Trump’s explicit threats to the company’s government-linked gross streams.

SpaceX, which holds multi-billion-dollar NASA contracts, besides emerged arsenic a imaginable target, though nary contiguous terminations person been confirmed.

Market watchers stay alert to whether Trump’s remarks construe into ceremonial procurement enactment oregon stay rhetorical. Musk’s declaration that helium whitethorn decommission SpaceX’s Dragon programme further fueled concern, though operational continuity clauses successful NASA agreements marque specified moves improbable without prolonged negotiations.

Bitcoin whipsaws amid Musk, Trump ‘divorce’

Bitcoin’s crisp determination downward, followed by a accelerated rebound, reveals capitalist sensitivity to governmental volatility astatine six-digit valuations. Per CoinGlass, $873 cardinal successful agelong positions were liquidated wrong hours, though nary systemic on-chain accent has yet been recorded.

Metrics, including hash complaint and speech reserves, stay stable, suggesting the selloff was sentiment-driven alternatively than fundamental. CryptoSlate information corroborates that portion the drawdown reached 4.8% overnight, the intelligence $100,000 level attracted beardown dip-buying interest, underscoring its relation as perceived enactment contempt bladed liquidity.

The broader crypto marketplace present faces a recalibrated regulatory outlook. Once a large and influential dependable successful favour of deregulation and Bitcoin adoption astatine the national level, Musk present stands extracurricular Trump’s ellipse of influence.

The departure of this confederation leaves ambiguity astir however Trump’s medication volition attack crypto argumentation done the remainder of 2025. As the CryptoSlate sum has tracked, Trump’s pivot toward targeted economical retaliation marks a notable improvement successful the administration’s code toward the tech sector.

Traders are present near questioning whether governmental personalities airs greater volatility risks than macro indicators oregon halving cycles.

While Musk has warned that Trump’s tariff expansions will trigger a U.S. recession successful the 2nd fractional of the year, the marketplace focuses connected whether Bitcoin tin sustainably clasp the six-digit level nether specified unpredictable conditions.