Crypto Market Slides Amid Political and Tech-Industry Turmoil
Bitcoin is threatening to break below $100,000 for the first time in a month, as a high-profile clash between Elon Musk and President Donald Trump rattles investor confidence. The cryptocurrency dropped over 4% late Thursday, falling to around $100,500, after starting the U.S. session at approximately $102,200.
Musk vs. Trump: A Political Feud Spilling Into Markets
The feud began over Trump’s proposed “Big, Beautiful Bill,” a controversial tax and spending plan, but rapidly escalated. President Trump accused Musk of being “crazy” and threatened to cancel government contracts with SpaceX, Tesla, and other Musk-led firms. In response, Musk alleged Trump was linked to the Jeffrey Epstein files and supported a social media call for Trump’s impeachment.
Tesla (TSLA) shares reacted sharply, plummeting over 14% on Thursday, marking one of the worst single-day declines in months.
CoinDesk 20 Index Drops Over 5%
The broader cryptocurrency market followed suit. The CoinDesk 20, which tracks the top 20 cryptocurrencies excluding memecoins, stablecoins, and exchange tokens, fell more than 5%. SOL and SUI recorded heavy losses, both declining over 7%, underlining broader investor risk aversion.
Crypto-related stocks also suffered. Coinbase (COIN) dropped 4.6%, while MicroStrategy (MSTR) slid 2.4%. Major crypto miners MARA Holdings (MARA), Riot Platforms (RIOT), and Core Scientific (CORZ) all saw losses around 5%.
Circle IPO Triggers Deja Vu
Adding fuel to the fire was the IPO of Circle (CRCL), the issuer of USDC, which stirred both excitement and caution. Initially priced at $31, Circle’s stock surged to over $100, before retreating to close at $83.
Market watchers recalled the 2021 IPO of Coinbase, which coincided with a major market top. The parallel has raised concerns about whether the Circle IPO could signal another peak for the current crypto cycle.
Outlook: Volatility Likely to Persist
With Bitcoin hovering near critical support, and tensions between tech leaders and political figures boiling over, volatility is expected to remain high. Investors are urged to stay cautious as geopolitical events increasingly influence market sentiment.