- A public feud between Trump & Musk over a U.S. spending bill rocked crypto markets
- The global crypto market cap shed $200 billion in value following the confrontation
- Bitcoin dropped over 6%, triggering nearly $1 billion in widespread liquidations
Tesla stock plunged 14% on Thursday after CEO Elon Musk publicly criticized President Donald Trump’s recently passed U.S. spending bill. Musk’s remarks, posted on X, called the legislation a “massive, outrageous, pork-filled” policy, sparking a fierce response from Trump.
In retaliation, Trump threatened to cancel federal contracts with Musk’s companies, including SpaceX. The fallout rattled investors and sent shockwaves through both tech and crypto markets.
The confrontation wiped out approximately $150 billion from Tesla’s market capitalization. Tesla closed at $284.70, marking its worst single-day performance of the year. At one point during the trading session, the stock had fallen more than 17% before staging a modest recovery. According to FactSet, it was Tesla’s 11th-worst trading day since its IPO in 2010.
Related: Elon Musk Warns U.S. Debt Interest Imperils Spending; Bitcoin Solutions Proposed
Tech and Crypto Markets React
The Musk–Trump clash caused broader market turmoil, especially across the technology and cryptocurrency sectors. Bitcoin dropped over 6% in 24 hours, falling to $100,400. This move triggered widespread liquidation, with total liquidations nearing $1 billion. The global crypto market capitalization sank from $3.34 trillion to $3.14 trillion, erasing around $200 billion in value.
At press time, Bitcoin had recovered slightly to $103,400, while Ethereum bounced back to $2,450.
Asian markets mirrored Wall Street’s decline, with tech-heavy indexes sliding across the board. Japan’s Nikkei 225 was a rare bright spot, closing up 0.3%, but overall sentiment across the region remained weak.
Related: Deaton Predicts Elon Musk Will Buy More Bitcoin After Spending Bill Sparks Fury
Musk Walks Back on Dragon Threat
Following Trump’s comments, Musk stated SpaceX might begin retiring its Dragon spacecraft, NASA’s only active vehicle for flying astronauts to the International Space Station. However, in a follow-up statement, Musk later clarified that SpaceX would not decommission Dragon, signaling a walk-back from the initial threat.
The situation remains volatile, with investors closely watching for further developments between two of the most influential figures in business and politics.
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