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Musk and Trump are at odds, Bitcoin plummets in response: This is not an emotional dumping, it's a structural warning.
On June 6, 025, when BTC fell below $103,000, many traders may have called "the tide of liquidation is coming". But what triggered the plunge this time was not the familiar Fed's interest rate hike and ETF approval failure, but the two most influential men in the United States who publicly tore their faces - Elon Musk and Donald Trump.
This is not an ordinary verbal conflict, but a direct collision between technological capital and populist politics. As the most sensitive asset to risk appetite, cryptocurrency almost immediately felt the chill, and it can even be said that behind this round of fall, there are hidden structural signals.
From Allies to Adversaries: Timeline of Conflicts Between Musk and Trump
In 2024, the two briefly shook hands under the slogan of "Revitalize American Manufacturing." But as 2025 approached, the atmosphere took a sharp turn for the worse:
April 16: Musk criticizes Trump's high tariff policy for disrupting the supply chain, claiming that the acquisition of the X platform has drained funds and refusing to pay for "protectionism."
May 28: Trump unveils the "Big Beautiful Act" (Super Tax Cut), which Musk warns of threatening fiscal efficiency and threatens to create a "new centrist party."
June 4: Musk claims Trump "sacrificed financial health for votes," calling on the market "to return to rationality."
6 June: The situation spirals out of control. Musk called Trump's budget bill "going to bring down the economy" and hinted at pushing for radical reforms. Trump immediately hit back on Truth Social, threatening to cancel a $38 billion federal contract between Tesla and SpaceX. Tesla's stock price plummeted 15% in a single day, and the digital asset market crashed simultaneously.
These rounds of confrontations have repeatedly appeared on our AiCoin hot topic tracking list, often ranking in the top five of trending searches, becoming an important trigger for emotional trading.
The market doesn't always focus on the macro, but when the two super narratives of technology and politics intersect, the on-chain wallets often react faster than the words.
BTC - What Musk ignited was actually structural panic.
Musk did not short BTC directly, but his remarks have reshaped the market's emotional anchor: from "tech leaders represent long-term growth" to "even Musk is starting to worry about fiscal deficits and policy stability." This conveys not just simple emotional fluctuations, but signals a repricing of the market's risk appetite.
From a technical structure perspective, this is not an emotional plunge caused by sudden negative news, but a structural breakdown after a clear platform consolidation:
Since May 30, BTC has been oscillating at a high level between $105,000 and $109,000, with market expectations of a breakout;
In the early morning of June 6th, an unexpected event triggered a significant drop, breaking through the key platform support level (around $103,000) with a large volume, reaching a low of $100,372 during the session;
The current rebound is limited, and the trend is stuck in a structural reassessment phase, with no clear signals of a stop in the fall or a reversal.
This is a composite downward trend of "fundamental expectation rupture + technical support failure". It is not a capitulation-style sell-off, but rather the market is calmly assessing: how much longer can the current valuation system support high-risk asset allocation? The real decision-making window may still be at a deeper level.
Ethereum: The Misunderstood Faith Coin, Falling Even Harder
On June 6, ETH fell to $2379 in just a few hours, with a daily drop of nearly 17%, far exceeding the drop of BTC during the same period. The market generally considers this to be a correlated downturn, but from the structure and rhythm, ETH was "hit harder" this time.
Why did ETH fall more sharply?
The technical structure is more fragile: Previously, ETH's rebound was weak, and it has not been able to effectively hold above 2600 USD. However, in the early hours of June 6, it directly broke through several short-term supports under heavy selling volume, showing a typical "accelerated breakdown" pattern.
Misreading of Lost Confidence and Events: Musk's statement about SpaceX's adjustment plan was misinterpreted by some communities as a denial of decentralization or the direction of technology development, which indirectly hit the emotional expectations of "technical narrative" assets such as ETH.
Funding misalignment: ETF funds were originally supportive of ETH, but due to sudden market fluctuations and regulatory uncertainty, new funds have clearly become more cautious, and the inflow speed has slowed.
High leverage leads to a chain liquidation: From on-chain and derivatives data, ETH has a higher leverage ratio compared to BTC, resulting in concentrated liquidations during the fall, further amplifying the decline.
Although the current price stopped falling near 2379, the rebound can not continue to amplify, and the overall price is still in the stage of emotional digestion. If it cannot return to above $2,500 in the future, it may still maintain the oscillating range in the downtrend.
This is not just a round of "contagion panic"; it is more like a combined amplification pullback of "technical weakness + capital fragility". Whether the market stabilizes still needs to be observed based on whether ETH can regain a foothold at the 2500 level and reduce the falling trading volume.
Behind the power struggle are structural signals in the cryptocurrency market.
The conflict between Musk and Trump is not just a political spat; it feels more like a market signal test—who will dominate the "New American Vision": the tech elites or the populist forces? Here are three structural variables that really need attention, as they will determine the next wave of trends in the crypto market:
Trump, who shouted "support for bitcoin mining" last year, suddenly turned around this year and publicly proposed to "curb speculative assets". The market is concerned that BTC and ETH may be characterized as securities or face stricter regulation by the CFTC. The joint CFTC/SEC hearing in Q3 will be key. If the transaction tax or KYC is enforced, the illiquid exchange may not be able to bear it, and the short-term correction of 20%-30% in BTC/ETH is not an exaggeration.
Trump's "Beautiful Act" stimulated fiscal spending, and the risk of a widening deficit intensified. U.S. Treasury yields remained below 4.5% in June, and if the 10-year Treasury yield rises above 4.5% or even near 4.8%, BTC valuations could be under heavy pressure. After all, historical data shows that BTC has a negative correlation of -0.65 with Treasury yields.
The keywords "Musk crypto" and "Trump regulation" on the AiCoin platform have seen a significant increase in popularity, requiring real-time monitoring of market sentiment trends to capture signs of a shift.
Conclusion: You should look at the candlestick charts, but don’t only look at the candlestick charts. The real variables in the crypto market are narrative and power structure.
Musk's tweet will not directly smash the market, and Trump's threat will not make BTC go to zero. But how investors interpret these remarks and how funds are repriced in response to expectations is the essence of influencing prices.
Looking at narratives is to understand direction, while looking at candlesticks is to grasp rhythm. Only focusing on one makes it difficult to build a real advantage amidst the fluctuations.
This game has just begun.