Trump and Musk’s Public Feud Shakes Both Traditional and Crypto Markets

A public dispute between President Donald Trump and Tesla CEO Elon Musk on June 5 sent shockwaves through both traditional markets and the cryptocurrency world. This drama erupted after Musk criticized Trump’s controversial “Big Beautiful Bill,” a major government spending proposal, calling it “a disgusting abomination.” 

The bill, which has sparked debate, is expected to add a $3 trillion deficit impact, with the Congressional Budget Office estimating debt-service costs of $551 billion over the next decade.

In response, Trump threatened to cut off billions in government contracts to Musk’s companies, Tesla and SpaceX, accusing him of receiving too many subsidies. Musk, in retaliation, suggested on social media that Trump’s name might be tied to sealed government files related to Jeffrey Epstein, without providing evidence. This remark added fuel to the fire, increasing the tension between the two billionaires.

While the crypto market saw minor fluctuations following the public spat, it was the smaller memecoins associated with Trump and Musk that experienced significant volatility. The Official Trump memecoin dropped 12% to $9.50 but later recovered to $10.63. 

Similarly, the MELANIA token saw a 13% dip. A new memecoin called KILL BIG BEAUTIFUL BILL (KBBB) surged briefly before plummeting by over 98%.

Dogecoin (DOGE), often associated with Musk, saw a 10.5% drop on June 5, part of a broader decline since late May, coinciding with Musk’s exit from a government advisory body called the Department of Government Efficiency (DOGE). Despite this, Musk’s official departure was framed as an effort to reduce government spending.

Tesla’s stock also took a hit in traditional markets, dropping 14% and losing $152 billion in market cap. Although it rebounded by 8.5%, the feud impacted the company. Musk’s net worth dropped by $34 billion, with the billionaire's wealth now estimated at $334.5 billion.

After the heated exchange, both Musk and Trump have remained largely silent on the matter. While Musk has refrained from commenting on social media, Trump’s chief of staff, Susie Wiles, indicated that the President does not plan to engage with Musk anytime soon. When asked about the possibility of reconciliation, Trump himself said, “No,” and criticized Musk for being disrespectful.

Despite the animosity, experts suggest that such relationships can shift quickly. Dr. Kirill Kretov from CoinPanel noted that while they may be rivals today, they could easily reconcile. He also highlighted the public pressure on Musk to distance himself from Trump, raising concerns about potential conflicts of interest.