Former allies Elon Musk and Donald Trump exploded into a public feud on June 5, 2025, splintering their unlikely alliance and rattling both political and financial markets. The trigger? Trump’s signature “Big Beautiful Bill” – a sweeping GOP tax-and-spending package. Musk lashed out on X (formerly Twitter), calling it an “abomination.” Trump fired back, threatening Musk’s businesses and ridiculing his outburst. Within hours, the clash escalated into personal attacks, meme wars, and crypto market chaos.

A Bitter Breakup Over the “Big Beautiful Bill”

The feud erupted when Trump unveiled the Big Beautiful Bill, a massive policy package that, among other things, slashed federal subsidies for electric vehicles. Elon Musk, who had previously served in a symbolic government role jokingly dubbed the “DOGE” (Department of Government Efficiency), blasted the bill for ballooning deficits and undermining clean energy.

“No one’s read the bill. It’s a disgusting Frankenstein monster,” Musk posted on X.

Trump responded at a press conference, calling Musk “very disappointing” and accusing him of whining over losing EV incentives. Musk retaliated by accusing Trump of lying and even hinted at scandalous links, tweeting: “Trump is in the Epstein files.”

This particular accusation by Musk added fuel to an already fiery feud. The comment referenced long-standing rumors and flight logs linking Donald Trump to financier Jeffrey Epstein, who was known for his connections to high-profile individuals and was later convicted of sex crimes. While Trump has denied wrongdoing and no formal charges have been brought against him in relation to Epstein’s case, Musk’s tweet reignited public scrutiny. Many saw the remark as a deliberate escalation, weaponizing unresolved controversy to discredit Trump.

As tensions peaked, Musk supported a viral post calling for Trump’s impeachment and launched a poll on X suggesting the creation of a new centrist political party — which received overwhelming support.

Crypto Markets in the Crossfire

The drama quickly spilled into crypto markets. Investors, ever sensitive to political risk and volatility, responded with a wave of selloffs.

• Bitcoin dropped from ~\$104,800 to ~\$101,900 (–2.8%)
• Ethereum slid more than 7% in two days, hitting ~\$2,400
• Solana and other altcoins saw losses above 7%
• Dogecoin, closely tied to Musk, plunged over 11%
• Tesla stock cratered over 14%, its worst single-day drop in years

Crypto investors reacted nervously to this political storm. Social sentiment on X swung sharply: pro-Musk influencers and meme-coin fans rallied around the Tesla CEO (one tweeted “My money’s on Elon,” calling Trump’s tariffs “super stupid”), and Musk himself even ran a Twitter poll on creating a new centrist party – which leaned heavily “Yes.” But others warned of spillover risk. Morgan Stanley–type analysts flagged that policy uncertainty could chill tech investing, and retail crypto traders watched the charts warily.

Dogecoin on a Downward Spiral

Musk’s favored meme-coin, Dogecoin (DOGE), took a particularly hard hit. The joke-ridden currency fell roughly 10% on Thursday alone, extending its weekly slide to about –22%. Much of Doge’s fanbase overlaps with Musk supporters, so his distancing from the Trump agenda (he quit the tongue-in-cheek “Department of Government Efficiency” – acronym DOGE – role) spooked investors. As one crypto analyst noted, Elon Musk’s “big mouth” has “a lot of influence,” and his public revolt emboldened Doge critics and even some Republicans in Congress to question support for the coin. In short, Musk’s withdrawal from Doge (and the acrimonious context) seemed to erode confidence in the token, adding to its price decline.

Trump-Backed Tokens: MAGA and TRUMP Diverge

While Elon Musk’s crypto footprint is well-known through Dogecoin and Bitcoin advocacy, Donald Trump has also become a direct player in the token economy – particularly through the rise of \$TRUMP (a.k.a. Trump Coin) and \$MAGA.

This meme-style token surged in popularity during the 2024 U.S. election campaign, often promoted by right-wing crypto influencers and unofficially branded as the “Trump token.” Though not formally endorsed by the campaign, blockchain records and Trump’s own public filings revealed in early 2025 that the former president holds more than \$6.5 million in \$TRUMP and related assets, including Trump Digital Trading Cards (NFTs) and royalties from tokenized image rights.

After the June 5 feud erupted, \$TRUMP coin saw a brief price spike, rising ~9% in under 12 hours as pro-Trump investors interpreted Musk’s betrayal as a chance to double down on their support. However, by June 6, the token had dropped over 10.9%, as broader market jitters and uncertainty about future regulatory posture weighed on sentiment.

Analysts also warned that any formal association between government officials and volatile tokens like \$TRUMP may bring future scrutiny from the SEC or Treasury, especially as crypto becomes entwined with national campaigns and political identity.

MAGA (\$MAGA)

Unofficially branded as the “Make America Great Again” token, \$MAGA is a politically-themed memecoin that gained traction in 2024 among Trump supporters. Although there is currently no official connection between Trump or his campaign and the \$MAGA token, it has become a rallying point for certain pro-Trump crypto communities.

After Musk’s attacks on June 5, \$MAGA surged briefly as loyalists interpreted the feud as a call to arms. However, the rally didn’t last.

Bigger Impact and Outlook

Beyond specific coins, the Musk–Trump feud injected fresh political risk into markets. Investors worried that regulatory priorities might shift: Tesla and other tech firms that enjoyed Trump’s favor now face uncertainty under this White House. The clash also underscored how social-media drama can sway asset prices. One portfolio manager quipped that Tesla’s steep drop (and Dogecoin’s tumble) was a reminder to “live by the meme, die by the meme.”

In summary, a personal rift between two of America’s most prominent figures turned into a market-moving event. The episode highlights how in the crypto era, tweets from titans can ripple through the financial system. As analysts noted, the feud might settle, but for now it has injected enough uncertainty that both crypto traders and traditional investors are watching closely.

Final Thoughts

Whether this Musk–Trump breakup is a short-term flameout or the beginning of a new political realignment, its effects are already being felt in the markets. Meme coins are down. Bitcoin is fragile. Trump’s \$TRUMP token is wobbling. And traders are suddenly looking at Twitter polls for macro signals.

In Web3, when billionaires brawl, the whole market watches—and sometimes, it bleeds.

Bitcoin (BTC) Trading Page – Gate.io

Ethereum (ETH) Trading Page – Gate.io

Dogecoin (DOGE) Trading Page – Gate.io

TRUMP Token ($TRUMP) Trading Page – Gate.io