1. The Political-Technical Collision No One Saw Coming
What began as a disagreement over fiscal policy has spiraled into a chaotic media storm, dragging with it names like Jeffrey Epstein, SpaceX, and the crypto market itself. On June 5, 2025, Elon Musk ignited controversy by publicly implying that Donald Trump was referenced in sealed Epstein-related files. This marked a sharp escalation in their feud—transforming a political spat into an international scandal. Let’s see the complete picture of the Elon Musk Trump feud.
The fallout? A ripple effect in the financial world—especially within the crypto markets, where both figures wield significant influence.
2. Musk and Trump’s Power Struggle Escalates
Musk, formerly aligned with Trump as the head of the Department of Government Efficiency, became an open critic after his resignation. He called Trump’s tax initiative—the “One Big Beautiful Bill”—an “abomination” and questioned the Republican Party’s fiscal discipline.
Things turned personal when Trump accused Musk of backpedaling for personal gain and even hinted at revoking EV-related federal contracts. In retaliation, Musk dropped a bombshell tweet:
“Time to drop the really big bomb: @realDonaldTrump is in the Epstein files. That is the real reason they have not been made public.”
False, this bill was never shown to me even once and was passed in the dead of night so fast that almost no one in Congress could even read it! https://t.co/V4ztekqd4g
He doubled down by sharing footage of Trump and Epstein in the 1990s—turning policy disagreement into full-blown scandal.
3. Market Reaction: Why Crypto Was the First to Flinch
While Musk and Trump’s war of words might appear distant from crypto, investors thought otherwise. Bitcoin, which hovered over $105,000, dipped below $101,000 within hours of the Epstein-related tweet. Ethereum fell by 7%, Solana by 3%, and BNB and XRP also suffered.
The biggest loser? The Official TRUMP token, which plunged by 10% in 24 hours.
This sudden downturn wasn’t driven by inflation, interest rates, or macroeconomic data—but by reputational risk, political volatility, and potential regulatory retaliation. In short, crypto wasn’t reacting to economics—it was reacting to power.
Bitcoin BTC Chart which saw a major drop the day of the feed: Coinmarketcap
4. Why This Matters for the Future of Digital Assets
Here’s the tech and economic breakdown:
a. Correlation Between Tech and Crypto
Crypto and tech stocks are now closely aligned. Tesla’s 15% drop on June 5 reverberated through ETFs and tech-weighted indices, many of which hold BTC or Ethereum indirectly. When Tesla bleeds, Bitcoin follows.
b. Government Contracts and Market Confidence
Trump hinted at canceling Tesla and SpaceX’s federal subsidies. Musk responded by briefly announcing the decommissioning of SpaceX’s Dragon spacecraft—a shock to both the space and defense sectors.
Crypto thrives on certainty, innovation, and institutional trust—all of which are now in question.
c. Trump’s Role in the Crypto Space
Trump’s direct endorsement of crypto through the TRUMP token and ideas like a national Bitcoin reserve lent mainstream validation to the market. A tarnished image, especially linked to Epstein files, undermines this trust.
Tokens associated with his brand—like TRUMP and MELANIA—are bleeding value. MELANIA is down 96% from peak, suggesting that political memes may now carry financial contagion risk.
5. Technical Trends Post-Conflict due to Elon Musk Trump feud
• BTC Support Level:
After falling below $101K, BTC found short-term support at $103.8K. Market analysts expect resistance around $106K, and support at $98.5K.
• Ethereum Analysis:
With a 7% drop, ETH showed signs of overreaction. Current resistance is at $3,080, with buyers potentially stepping in at $2,860.
• Trump Token Volatility:
TRUMP’s collapse to $9.80 puts it near long-term support. However, without political or legal clarity, recovery is speculative at best.
6. What to Watch Next in Elon Musk Trump feud
Will Musk release more allegations or evidence?
Can Trump stabilize crypto support through public statements?
Will federal contracts for Tesla and SpaceX be officially terminated?
How will crypto regulators respond to the political influence over token values?
💡 Final Thoughts
The Elon Musk Trump feud may have originated in policy, but its current form is a livewire threading through finance, politics, and technology. The Epstein file mention was not just a jab—it was a market mover.
While the crypto market may recover from the initial dip, this episode is a stark reminder that in 2025, crypto is no longer isolated—it’s intertwined with the most powerful figures on Earth.
Stay tuned. Because if politics is volatility, crypto is now its mirror.
Read more updates and articles on our Crypto category page and also for Bitcoin price Forecast
