How the Trump-Musk Fallout Sparked a Crypto Crash: Bitcoin, Dogecoin Dive to New Lows Despite Circle’s Blockbuster IPO
Bitcoin plunges below $101,000, Dogecoin tanks over 9%, and investor jitters grow amid fresh US trade tensions and top-level feuds.
- Bitcoin falls 4% in 24 hours, trading near $100,825
- Dogecoin tumbles 9.3% as Musk-Trump feud intensifies
- XRP and Solana drop 5.6% and 7.7%, lowest in a month
- Circle’s IPO soars, but can’t lift crypto market gloom
The cryptocurrency world jolted awake Thursday as Bitcoin’s price crashed below $101,000—a level not seen in nearly a month—triggering panic across global markets. Major altcoins suffered double-digit drops, and Dogecoin’s dramatic plunge sent shockwaves through the memecoin community after tensions erupted between two of its most influential backers: Elon Musk and President Donald Trump.
Traders watched in disbelief as a rare, public rift between the billionaire Tesla CEO and the former President overshadowed even the most bullish news, including Circle’s much-hyped stock market debut. Crypto investors are grappling with a storm of challenges: harsh macro data, churning trade politics, and the threat of recession.
Q: Why Did Bitcoin and Major Altcoins Crash This Week?
Bitcoin’s descent below $101,000 didn’t happen in a vacuum. Several key factors set the stage for Thursday’s capitulation:
- Trade Tensions: President Trump raised tariffs on steel and aluminum, increasing fears of a new global trade war and rattling financial markets.
- Economic Signals: Soft jobs data and dismal productivity numbers suggested a slowing US economy, undermining risk assets like crypto.
- Musk-Trump Feud: After harsh criticism from Musk about Trump’s 2025 budget plan, the President threatened to ax Musk’s government contracts, sending investors scrambling.
While traditionally resilient, Bitcoin dropped nearly 4% in just 24 hours, according to CoinGecko tracking. Over the last two weeks, BTC has shed more than 9%. Market analysts see investor caution, not outright panic, driving these moves.
Q: What Happened to Dogecoin and Other Altcoins?
It was an especially brutal day for altcoins:
- Dogecoin nosedived 9.3% as its main champion, Elon Musk, landed in hot water with Trump. Musk’s past support has often triggered Dogecoin rallies, but political headwinds pushed DOGE to its lowest price since May 7.
- Solana (SOL) and XRP dropped 7.7% and 5.6%, respectively—marking their softest performance in weeks. Thinning market liquidity amplified the sell-off.
Despite marquee news—like Circle’s IPO, which surged to $83.23 on opening day—the crypto market simply could not shake off growing macroeconomic uncertainty.
How Did Stocks and IPOs React to the Crypto Chaos?
Stock markets mirrored crypto’s selloff, with the tech-heavy Nasdaq and S&P 500 both closing deep in the red. Circle, the stablecoin issuer, briefly bucked the trend, as its long-awaited IPO was halted three times by the NYSE due to overwhelming demand. Still, the broader market mood remained gloomy.
Crypto insiders like BitBull Capital’s CEO expect “choppy” conditions to linger unless a major catalyst emerges—such as a Fed rate cut or a sudden wave of institutional ETF investment.
How to Navigate Crypto Markets in 2025’s Volatile Landscape
Investors eyeing the next move should watch these key indicators:
- US Trade Policy: Ongoing tariff battles add massive uncertainty—keep a close eye on new White House announcements via WhiteHouse.gov.
- Macroeconomic Reports: US employment and ISM data influence risk appetite. Visit BLS.gov and ISM World for latest readings.
- Major Crypto Announcements: New ETF approvals or central bank moves can quickly reset the market mood. Track updates from SEC.gov and reputable crypto news sources like CoinDesk.
For now: expect volatility, range trading, and sharp sector rotations as crypto digests a whirlwind of global news.
Checklist: Ready for the Next Crypto Move?
- Monitor Bitcoin levels at $100K for possible buying opportunities
- Follow new developments in the Trump-Musk relationship
- Stay alert to US trade and jobs data
- Diversify exposure—altcoins remain highly volatile
- Bookmark trusted sources like CoinGecko and Circle for real-time updates
Stay ahead—sign up for daily crypto news and never miss a market move!
