Investors ‘bleed’ as Trump vs Musk feud crashes markets—$1 billion lost in meltdown

The cryptocurrency market is in turmoil as the explosive Trump vs Musk feud triggers a massive sell-off, wiping out nearly $1 billion in leveraged positions. With Bitcoin crashing below $105,000 and Dogecoin plummeting 7.9%, traders are scrambling to limit losses amid one of the most volatile trading days of 2025.

How the Trump vs Musk war ignited a crypto bloodbath

The chaos began when Elon Musk blasted a proposed government spending bill on X, calling it a “disgusting abomination.” Donald Trump fired back, accusing Musk of “Trump Derangement Syndrome” and threatening to cut federal subsidies to Tesla and SpaceX.

“This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination. Shame on those who voted for it: you know you did wrong. You know it,” Musk posted on X.

The Trump vs Musk showdown has taken the financial markets by storm, especially crypto, where both figures hold outsized influence.

“These are two of the most polarizing figures in finance,” said market analyst Clara Wu. “When Trump vs Musk tensions rise, crypto traders react first and ask questions later.”

Dogecoin and Ethereum hit hardest as liquidations soar

Data from Coinglass reveals $988 million in liquidations within 24 hours, with 228,646 traders caught in the storm. Musk’s beloved Dogecoin (DOGE) crashed 7.9%, while Ethereum (ETH) tumbled 6.6%. Even Bitcoin (BTC), often seen as a safe haven, dropped 2.4%—its sharpest decline in weeks.

The Trump vs Musk fallout didn’t spare meme coins either. TRUMP, the official Trump-themed token, nosedived 10.8% as panic spread.

“This isn’t just about fundamentals—it’s about fear,” said hedge fund manager Mark Yusko. “The market hates uncertainty, and Trump vs Musk is the ultimate wildcard.”

Long positions obliterated as Bitcoin bleeds

Leveraged traders bore the brunt of the carnage. A staggering $888.7 million in long positions were liquidated, dwarfing the $99.3 million in shorts. Bitcoin alone saw $308 million in long liquidations, signaling a brutal day for bulls.

The Trump vs Musk feud also rattled institutional investors. The Bitcoin Coinbase Prime Index, a key gauge of U.S. “smart money” sentiment, flipped negative for the first time this month. “When whales retreat, retail gets crushed,” noted crypto strategist Lyn Alden.

Could the Trump vs Musk drama benefit Bitcoin long-term?

Paradoxically, some analysts argue the feud highlights Bitcoin’s value as a censorship-resistant asset.

“The Trump vs Musk fight proves why decentralized money matters,” said Kraken CEO Dave Ripley. “No politician or CEO can freeze your Bitcoin.”

Yet for now, traders remain on edge. With neither Trump nor Musk backing down, the Trump vs Musk saga could keep crypto markets volatile for weeks. As one Reddit user posted: “Buckle up. This is just Round 1.” The Bit Gazette will continue to monitor developments and report them as they break.