The public fallout between President Donald Trump and Elon Musk had a negative impact on the broader crypto market, with XRP price crashing 7%.
The rift revolves around President Trump’s massive tax-cut bill, dubbed the ‘One Big Beautiful Bill Act (OBBBA).’ Despite Trump’s push to rally Congress behind it, Musk has been criticizing the bill and advocating against it.
However, Musk urged Americans to call their Senators and Congressmen to “KILL THE BILL.” He opined that the bill could plunge the United States into ‘debt slavery.’ During a press conference with German Chancellor Friedrich Merz, Trump expressed disappointment in Musk’s continuous criticism of OBBBA.
The President revealed that Musk was aware of the bill and initially seemed pleased with it, but changed his stance after he withdrew the EV mandate. In response, Musk denied Trump’s claim, asserting that the bill was quickly passed without him or most members of Congress reading it.
Furthermore, Musk emphasized that Trump would have lost the election without his support and that the Democratic Party would have held a majority in Congress.
Also, Musk claimed that documents relating to investigations into child sex offender and American financier Jeffrey Epstein have remained sealed to date because Trump’s name appears in them.
Trump threatened to revoke the federal government contracts and subsidies for Musk’s companies. Consequently, the Tesla founder suggested that Trump should be impeached as he touted JD Vance as a potential replacement.
Why Did Trump and Musk’s Feud Impact the Crypto Market?
As expected, the epic fallout had a devastating impact on the crypto market, given the duo’s ties to the industry.
For context, Musk is well-known in the crypto industry for his support of Dogecoin. Besides DOGE, his company, Tesla, also owns 11,509 Bitcoins in the hours leading up to press time.
Trump, on the other hand, has rolled out several favorable crypto initiatives, including ordering the creation of a crypto reserve. Therefore, a fallout between the pro-crypto advocates impacted the crypto market.
XRP Price Plunges Amid Trump-Musk Clash
In particular, XRP, which traded at a daily high of $2.23 yesterday, crashed to $2.06, representing an intraday dip of 7.62%. Interestingly, the dip was short-lived, as XRP price experienced an incredible rebound, pushing its price to $2.14, where it currently trades.
Despite the rebound, XRP remains down 3.24% in the past 24 hours, 3.84% in the seven-day timeframe, and 0.37% over the past month.
Bitcoin and Ethereum Suffer Dips
In addition to XRP, other major cryptocurrency assets, like Bitcoin and Ethereum, also experienced price drops. Bitcoin crashed from the $105,900 region to $100,000, marking a decline of 5.57%. Similarly, Ethereum’s price plummeted to $2,387 from a daily high of $2,640, representing a 9.58% drop.
Like XRP, both Bitcoin and Ethereum have rebounded from their daily lows, climbing to $102,885 and $2,452, respectively.
Meanwhile, the broader crypto market also felt the heat of Musk and Trump’s feud, with bulls and bears sustaining losses.
According to Coinglass data, the total liquidations reached $982.13 million in the past day. Long liquidations—bets on rising Bitcoin and altcoin prices—totaled $881.23 million within this timeframe—similarly, short liquidations—bets on falling crypto prices—incurred $100.9 million in losses.
Notably, the total liquidations for XRP, Bitcoin, and Ethereum over the past day stood at $23.4 million, $341.68 million, and $286.02 million, respectively.
