Trump vs. Musk Sparks Crypto Meltdown: Bitcoin Crashes Below $101K, Tesla Tanks 14%, Circle IPO Frenzy Grips Wall Street
Bitcoin plunges, Tesla stock nosedives, and Circle surges as Trump-Musk drama shakes global crypto and stock markets in 2025.
Quick Facts
- Bitcoin drops over 4% to $100,500, nearing a one-month low
- Tesla stock plummets 14% after high-profile spat
- CoinDesk 20 Index sinks 5%
- Circle (CRCL) IPO spikes to $100+, closes at $83
The cryptocurrency world is reeling after an explosive public feud between U.S. President Donald Trump and Tesla CEO Elon Musk sent shockwaves through global financial markets Thursday.
Bitcoin rapidly plunged over 4%, slumping to $100,500 and teetering below the critical $100,000 mark for the first time in a month. The wider crypto market felt the pain too; the CoinDesk 20, which tracks the top digital assets, suffered a harsh 5% drop as panic swept across trading desks worldwide.
Meanwhile, Wall Street titans watched as Tesla stock nosedived an eye-watering 14%. Crypto blue chips such as SOL and SUI weren’t spared, each hemorrhaging more than 7%. Even legacy mining firms like MARA, Riot Platforms, and Core Scientific reported losses of up to 5%. Over at Coinbase, shares slumped 4.6%, while MicroStrategy was down 2.4%.
CoinDesk tracked Thursday’s turmoil, highlighting how quickly sentiment changes in the digital age.
What Triggered the Trump-Musk Meltdown?
What began as a heated debate over the so-called “Big, Beautiful Bill” and its potential to balloon U.S. national debt rapidly spiraled out of control. President Trump, in a rare prime-time outburst, bashed Musk and threatened to yank contracts from every Musk-led company, including SpaceX.
Musk, never one to stand down, fired back on social media, throwing shade at the President’s alleged connections to the infamous Jeffrey Epstein files. In a move that stunned both Washington and Silicon Valley, Musk declared an intent to decommission SpaceX’s Dragon aircraft and even backed calls for Trump’s impeachment and replacement by Vice President J.D. Vance.
The result? Global financial markets responded with lightning-fast volatility.
Why Is Crypto Reacting So Sharply?
Crypto thrives—or withers—on investor sentiment and regulatory winds. When two heavyweight influencers like Trump and Musk collide in such a public fashion, the market reacts. The U.S. government’s potential cancellation of major contracts threatens Musk’s vast empire, including Tesla and SpaceX—both darlings of risk-on investors.
The broader digital asset ecosystem, already jittery from ongoing regulatory battles and fears of stricter oversight in 2025, buckled under the added weight of uncertainty. Investors cashed out en masse, triggering cascading losses beyond just bitcoin.
To track digital asset prices in real time or learn more about coin fundamentals, visit Coinbase or Kraken.
How Did Circle’s IPO Become the Day’s Wild Card?
Amid the carnage, stablecoin giant Circle (CRCL) made its long-awaited debut on the public markets. Fueled by memories of Coinbase’s historic IPO in 2021—which marked a major turning point in crypto history—Circle mania reached fever pitch. The stock rocketed from its $31 offering price up past $100 before settling at a still-dazzling $83 per share.
Some investors fear that, as with Coinbase, Circle’s IPO excitement could signal a market top for cryptocurrencies. Others are betting this could signal a new era as stablecoins become even more mainstream in global finance.
Stay current with the latest trends and analysis at CNBC.
Q: What Should Crypto Investors Do Right Now?
Stay calm. Evaluate your risk tolerance and avoid panic selling. Diversification is more important than ever during sudden market shocks. Consider stablecoins or hedging strategies if volatility remains elevated.
How to Safeguard Your Portfolio Amid Market Chaos
- Review your holdings and cut excessive risks
- Set stop-loss orders to protect profits
- Monitor trusted news sites for rapid developments
- Focus on long-term projects with real-world backing
- Beware of hype and rumors on social media
Don’t Get Caught Off Guard—Act Now!
- ✅ Check your crypto and equity positions ASAP
- ✅ Follow breaking news on major financial platforms
- ✅ Update risk management strategies for 2025 volatility
- ✅ Sign up for news alerts from trusted sources like Bloomberg and Reuters
Stay sharp in these turbulent times—the next headline could reshape your investments in a flash!
