🧞Are you going to lose all your bags? Fight of the year: Trump vs Musk

Another day, another scandal

Jun 09, 2025

Gm and happy Monday frens🖖

The best ad for couples therapy just dropped: Musk and Trump are fighting. The market is shaking. Ethereum (ETH) just dropped by 7%, and Dogecoin (DOGE) by 10%.

What is the reason behind their now-sour relationship (or situationship, as it now seems) and what should the crypto market expect?

In today issue:

🌴 Come to Cannes, mon chéri
👴 Why boomers shouldn't be allowed on the Internet
🧵 ICP, MCP & a billion dollar idea
📰 News

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From testing AI x Web3 ideas in the wild to scaling the next-gen dApp stack — here's what’s coming 👇

🏕 Oz city: AI x Web3 Pop-Up City
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🌀 L2con @ EthCC[8]
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🛠️ Deep-dive: Another day, another scandal

Short timeline of our's favorite powercouple fighting. Does anyone have a breakup advice?

What just happened

Once political allies, Elon Musk and Donald Trump are now locked in a bitter public feud. The fallout began after Musk quietly stepped down from Trump’s “Department of Government Efficiency (DOGE)” in late May.

Things escalated dramatically:

On June 3–4, Musk began slamming Trump’s new tax-and-spending bill as a “Big Ugly Spending Bill” that would add over $2.5 trillion to the deficit.
Trump responded at a White House press conference, mocking Musk and claiming the billionaire only turned on him after losing electric vehicle tax credits.
Musk hit back on X, saying “Such ingratitude” and insisting that “without me, Trump would have lost the election.”

Trump escalated on Truth Social, calling Musk “CRAZY” (sic!) and threatening to cancel government contracts with his companies. Musk responded by accusing Trump of appearing in Epstein files and retweeting calls for impeachment.

What’s behind the fallout?

Fiscal conflict: Musk is a vocal critic of large deficits; Trump’s proposal includes massive spending and cuts to EV tax incentives.
Personal betrayal: Musk reportedly poured hundreds of millions into pro-Trump ground operations, yet Trump pulled key policy support.
Power shift: Trump retaliated by blocking Musk’s NASA nominee and mocking him publicly.

Crypto market reaction

As the feud unfolded, crypto markets dropped sharply. According to:

CoinDesk: Over $1 billion in leveraged positions were liquidated.
Reuters: The entire crypto market lost ~$170 billion in value within 24 hours.
Decrypt: Dogecoin, closely linked to Musk, fell over 10% in a single day.

Where is this headed?

Near term
Crypto markets will stay jumpy, as every Musk or Trump post has the potential to break prices with Dogecoin remains the quickest to react.

Medium term
If the rhetoric cools, valuations should drift back toward fundamentals; however, any renewed talk of EV or crypto crackdowns would swiftly revive volatility.

Long term
Adoption trends, upcoming tech upgrades, and broader regulation will matter far more than this feud. Unless the White House turns explicitly anti-crypto, the Musk-Trump clash should prove a brief headwind rather than a lasting market driver.