The cryptocurrency market is turning red fast as tensions escalate between U.S. President Donald Trump and Tesla CEO Elon Musk. Late in the U.S. trading day, Bitcoin plunged over 4%, slipping below $100,500 and risking a return to five digits for the first time in a month. The CoinDesk 20, which tracks the top 20 cryptocurrencies by market cap (excluding exchange coins, memecoins, and stablecoins), also dropped more than 5%. Notably, SOL and SUI suffered losses of over 7%, dragging the overall market down.
Meanwhile, Coinbase stock fell 4.6%, and MicroStrategy (MSTR) declined 2.4% on Thursday. Several mining stocks, including MARA Holdings, Riot Platforms, and Core Scientific, each lost around 5%. The sharp declines coincide with a heated political feud that started over concerns about the impact of the “Big, Beautiful Bill” on U.S. national debt. The argument quickly spiraled, with Trump calling Musk “crazy” and threatening to cancel government contracts for Musk-led companies. Musk, in turn, accused Trump of being involved in Jeffrey Epstein’s files, announced that SpaceX would decommission its Dragon spacecraft, and expressed support for impeaching Trump, suggesting Vice President J.D. Vance as a replacement. Tesla’s stock also took a hit, dropping more than 14% on the same day.
Adding to the market pressure, the IPO of stablecoin issuer Circle (CRCL) stirred excitement and concern alike. The launch reignited memories of Coinbase’s 2021 debut, which marked a peak for the crypto market. Circle’s shares surged from an opening price of $31 to over $100 before settling at $83, reflecting the ongoing volatility and investor sentiment around new crypto-related offerings.
Stay tuned as these developments continue to influence the crypto landscape, with traders and investors watching closely for further moves amid this turbulent political and financial climate.
