CNBC “Trump-Musk breakup, A direct hit to cryptocurrency investors”

Trump President and Elon Musk Parted Ways 5 Months After Trump's Inauguration (Source: PBS)

According to CNBC, the Cryptocurrency market is being directly hit by the public discord between Donald Trump, President of the United States, and Elon Musk, Tesla CEO.

According to the media, Musk recently resigned from the Government Efficiency Department (DOGE) under the Trump administration and strongly criticized the tax bill led by Trump. In response, President Trump strongly reacted by suggesting the possibility of reducing tax benefits related to electric vehicles and stopping government contracts.

Following this conflict, both Cryptocurrency prices and Tesla's stock price showed a downward trend. Major Cryptocurrencies, including Bitcoin, plummeted for two consecutive days, and Tesla's stock fell by nearly 4.5% in a day.

CNBC reported, “The Trump second-term administration received strong support from both the Cryptocurrency industry and Elon Musk from the beginning of its inauguration,” and added, “The market's expectations for them played a role in boosting Tesla's stock and Cryptocurrency prices together, but now the opposite situation is happening.”

Experts are pointing out that the deteriorating relationship between the two figures could lead to structural uncertainty beyond a short-term shock on policies and the market. For Cryptocurrency investors, political risk is re-emerging as a major factor of market volatility.