Musk vs. Trump: Escalating Conflict Sends Crypto Markets Tumbling

White House Prepares Call with Elon Musk

The White House has scheduled a phone call with Elon Musk for Friday morning. This comes amid an intensifying public feud between Musk and Donald Trump.

Musk Warns: Trump’s Tariffs Could Trigger Recession

Elon Musk stated that Trump’s tariff policies could lead to a recession in the second half of 2025. He also backed calls for Trump’s impeachment and suggested replacing him with Senator and Vice President J.D. Vance.

Trump Fires Back at Musk

Donald Trump accused Musk of burnout and revoked the electric vehicle mandate, saying “no one wants his cars.” He claimed Musk knew about the move months ago and lashed out anyway. Musk responded by calling Trump’s claims false.

Call for Reconciliation and Defamation Accusations

Despite the tension, Musk endorsed Bill Ackman’s appeal for reconciliation in the national interest, replying, “You’re not wrong.” However, Musk also reposted content linking Trump to Jeffrey Epstein. Analysts suggest Trump may sue Musk for defamation.

Crypto Market Reacts

Memecoins and Tesla Stock Plummet

The conflict caused Dogecoin to fall 22%, Tesla shares to drop 14%, and the TRUMP token to lose 10%.

Pump.fun Urges Musk to Launch a Memecoin

Pump.fun invited Musk to launch a token in response to Trump’s, calling it “the most interesting thing in history.”

Bearish Technical Indicators

The MVRV ratio fell below the 200-day moving average, signaling a bearish trend.

Major Crypto Developments

• Truth Social Bitcoin and Ethereum ETF trust registered in Nevada.

• Yuga Labs CEO proposed dissolving ApeCoin DAO and forming ApeCo.

• North Korea’s Lazarus Group is targeting finance professionals with deepfake interview malware.

• Circle debuted on NYSE with a 168% surge, closing at $83.23 and a $18.5B market cap.

• LayerZero CEO accused Hyperlane of fake volume; Hyperlane blamed bounty hunters.

• World Liberty Financial issued a cease and desist to Fight Fight Fight for using the “TRUMP” name without authorization.

• Arthur Hayes predicts a new crypto IPO mania similar to 2017’s ICO boom.

• SEC to host a DeFi roundtable Monday; House to review the CLARITY Act Tuesday.

• CZ denied ties to Trump memecoin event, accused NYT of spreading FUD.

• 21Shares filed an updated application for a Polkadot spot ETF with the SEC.

Macroeconomic Headlines

SpaceX Will Continue Dragon Missions

Musk confirmed SpaceX will not suspend its Dragon spacecraft missions despite the feud with Trump.

JPMorgan: ECB Rate Cut Expected in September

JPMorgan now expects the European Central Bank to cut rates in September instead of July.

U.S. Debt Growth Alarming

It took the U.S. ~220 years to reach $12 trillion in debt—and only four years to add another $12 trillion, sparking widespread concern.

Media Escalation

CNN published a headline: “The ugliest things Trump and Musk just said about each other,” escalating the media war between the two figures.