Key Takeaways
– In early June 2025, days after Musk left his advisory position in the Trump administration, the two sides publicly fell out, sparking impeachment rumors and wild market volatility.
– Policy differences over the “Big, Beautiful Bill” that drives fiscal deficits and the rollback of electric vehicle incentives are at the heart of their conflict.
– Tesla’s stock price plummeted 14%, wiping out tens of billions of dollars in market value; at the same time, Bitcoin prices and BTC spot trading volumes soared as investors sought safe-haven assets.
– The turmoil has raised important questions about the 2026 midterm elections, the prospects for the SpaceX contract, and the safe-haven role of cryptocurrencies on platforms like XT Earn.
In early June 2025, the seemingly unbreakable "marriage" between President Trump and tech tycoon Musk suddenly collapsed. The reason was that after Musk left the White House Government Efficiency Committee, he was dissatisfied with federal spending and new energy vehicle policies, and publicly criticized them, which quickly triggered impeachment rumors, a large-scale sell-off of Tesla, and a rapid rebound in Bitcoin BTC .
This article will deeply analyze from five perspectives - historical background, June timeline, political impact, business consequences, and crypto market reaction - how this head-on conflict between people and policies has set off a chain of waves in Washington, Wall Street, and Silicon Valley.
Table of contents
Background: From waiting and watching to the White House "honeymoon"
Political shocks and impeachment
Business consequences: Tesla's plunge and SpaceX's survival
Crypto market earthquake: Why Bitcoin rose against the trend
Future Outlook: How will the situation evolve next?
Background: From waiting and watching to the White House "honeymoon"
Image Credit: CNN
Early Interactions (2016 – 2017)
In November 2016, after Trump was unexpectedly elected, Musk tweeted that "the new president's personality does not seem to represent the image of the United States." However, in December of the same year, Musk joined Trump's business advisory committee, trying to influence climate and immigration policies. In June 2017, Trump announced his withdrawal from the Paris Climate Agreement, and Musk immediately resigned from his advisory position, saying that this decision was "bad for both the United States and the world."
Friction during the administration (2017-2021)
During Trump's first term, Musk's interactions with the government were sporadic and often controversial. He publicly criticized the suspension of certain work visas, believing that it was very detrimental to Tesla's recruitment of highly skilled personnel; he also opposed trade tariffs that could threaten Tesla's overseas production. Musk's remarks sometimes even affected the crypto market, causing short-term fluctuations in BTC/USDT spot and BTC/USD coin-based contract trading. Many investors will turn to Bitcoin staking or income products like XT Earn to avoid risks.
2022 Public Fight
In mid-2022, Musk restored Trump's account after acquiring Twitter, calling the previous ban "stupid." In response, Trump fought back at a rally in Alaska, calling Musk "another bullshitter," to which Musk responded by suggesting that he "put away that hat and go on vacation at sea."
The “honeymoon period” of 2023-2024
In July 2024, after the assassination attempt on Trump, Musk publicly supported him, donated $277 million with a Super PAC, held a live interview with Trump on the X platform, and proposed the establishment of a "Department of Government Efficiency" (DOGE) plan. This seemingly unlikely "honeymoon relationship" began, and also foreshadowed the subsequent breakup.
Image Credit: USA Today
June 2025 Dispute Timeline
Late May 2025
Musk officially left the White House at the end of May after serving as a temporary special employee of the Department of Government Efficiency (DOGE) for about 130 working days. At the farewell ceremony, Trump presented him with the "Key to the White House", but also hinted that the relationship between the two had cracked.
Image Credit: Mediaite
June 1 – 3
A few days later, Musk publicly said on Twitter that the "Big, Beautiful Bill" would cause the fiscal deficit to spiral out of control and was an "abomination." Trump then threatened to revoke Tesla's electric vehicle incentives and review SpaceX's federal contracts, warning that if Musk continued to criticize the government, his company would face serious consequences.
June 4 – 5
On June 4, Musk posted (and later deleted) a comment on X suggesting that Trump’s name appeared in Epstein’s sealed documents, sparking a strong denial from the White House and rumors of impeachment. Trump fired back on Truth Social, calling Musk “crazy” and hinting at re-removing him as an advisor, further inflaming public opinion.
June 6 – 7
The market was volatile. On June 6, Tesla's stock price plummeted by more than 14%, evaporating about $138 billion in market value in a single day, and Musk's net worth lost about $34 billion. At the same time, Bitcoin prices soared by nearly 8% due to safe-haven demand, and BTC/USDT spot trading volume and Bitcoin spot inflows into custody products rose sharply.
June 8 – 11
Starting from June 8, both sides began to restrain their remarks. Musk deleted the most controversial posts and replied to Trump's goodwill greetings with "mutually". Trump publicly stated that he "was not thinking about Elon", but also sent his blessings. Although the atmosphere eased, the two sides did not arrange a formal reconciliation dialogue, and as of June 11, the rift still existed.
Political shocks and impeachment
Image Credit: Radboud Universiteit
Policy differences set off the fuse
The trigger was that Musk publicly criticized Trump's "Big, Beautiful Bill", calling it a "disaster" that would cause the federal deficit to get out of control; Trump immediately fought back, threatening to revoke Tesla's electric vehicle incentives and possibly take back SpaceX's federal contract.
Impeachment rumors swirled
On June 5, Musk went a step further, suggesting on X that Trump was involved in Epstein's sealed documents and publicly supporting calls for Trump's impeachment (the relevant remarks were later deleted). The public opinion field exploded instantly: liberal commentators praised Musk for his outspokenness, while conservatives criticized him for overstepping his authority. Although it was still early to discuss impeachment, it dominated TV and radio headlines for several days.
Internal Party Dynamics
Cracks are emerging within the Republican Party. Some establishment figures privately lamented the loss of Musk’s huge support, who donated about $277 million to the Trump camp through a super PAC in 2024, while extreme MAGA supporters sided with Trump and viewed Musk as an “elite meddler.” Now, with the 2026 midterm elections approaching, strategists warn that the defection of tech-savvy donors like Musk could force the Republican Party to seek new sources of funds or even lose liberal base voters.
Media Interpretation
Major news media packaged this conflict as the ultimate contest of "billionaire vs. president". The Associated Press and major TV networks repeatedly broadcast photos of Musk and Trump in the past, and compared the latest quarrels between the two, rendering the incident into a political thriller of power and grudges. The financial channel also pointed out that this storm even affected the crypto market: risk-averse people sold stocks and switched to BTC/USDT spot trading, and the demand for income products such as XT Earn also rose. At the same time, public opinion continued to discuss who has more bargaining chips: Trump, who holds federal power, or Musk, who controls social media and market value trends?
Business consequences: Tesla sell-off and SpaceX at risk
Market impact
This public confrontation immediately shook the financial markets. On June 6, Tesla's stock price plummeted by more than 14%, and its market value evaporated by about $138 billion. Musk alone lost about $34 billion. Analysts said the sell-off was due to investors' concerns about Trump's threats, coupled with Musk's unpredictable words and deeds, which could weaken Tesla's reliance on federal subsidies and contracts. Hedge funds and retail investors liquidated their positions, while Bitcoin BTC rose simultaneously, with the price soaring by nearly 8% at one point, becoming a new destination for safe-haven funds.
Policy threats
Trump has publicly warned that he may cancel or renegotiate federal contracts and subsidies that benefit Musk's companies, targeting SpaceX's multi-billion dollar launch agreement with NASA and Tesla's electric vehicle tax credits. He even hinted at depriving SpaceX of its right to provide space transportation services for American astronauts, which would force NASA to urgently find alternatives.
Image Credit: Inspired Pencil
Competitive Landscape
Competitors are moving quickly. Blue Origin and United Launch Alliance (ULA) are stepping up their pitch to NASA, preparing to take over when SpaceX's contract is limited. And some conservative consumer groups have begun to boycott Tesla in states where Trump fans gather, which could weaken its share in key markets.
Brand Reputation
Polls and social media sentiment show that Tesla's brand support is polarizing: some urban progressives are still buying in, while Republicans are showing distrust. On the institutional side, many pension funds and ESG investors have suspended new Tesla allocations, waiting for policy risks to become clear.
Crypto market earthquake: Why Bitcoin rose against the trend
Safe-haven funds pour in
As Tesla's stock price plummeted on June 6, investors turned to alternative assets, with Bitcoin becoming the biggest winner. In two days, BTC spot trading volume on major exchanges surged by more than 35%, reflecting investors' urgent need for non-correlated value storage. Portfolio managers said political uncertainty and stock market volatility were the main drivers of the influx of funds into the crypto market.
Correlation breakdown
Historically, Bitcoin BTC has maintained a certain correlation with risky assets during market panic. However, in early June, this relationship was completely broken: on June 6, the S&P 500 fell by more than 2%, while the price of Bitcoin jumped by nearly 8%, showing a clear decoupling from the traditional stock market. This differentiation is even more obvious in the BTC/USDT trading pair, with trading volume and volatility far exceeding that of stocks, highlighting the safe-haven function of crypto assets during political turmoil.
On-chain metrics
On-chain data further confirms this trend. From June 5 to 7, the number of new wallet addresses increased by 40%, indicating that retail investors and institutions have entered the market; the total network transaction volume also climbed by 25% during the same period, mainly driven by large transfers to custodial and self-custodial wallets, which has both speculative demand and strategic layout.
Image Credit: Glassnode
Long-term effects
The market in early June may become a watershed for investors to view cryptocurrencies. If Bitcoin continues to play a safe-haven role in future geopolitical or policy turmoil, products such as Bitcoin staking and income platforms such as XT Earn may usher in continued growth, allowing cryptocurrencies to be on par with gold and treasury bonds in diversified investment portfolios.
Future Outlook: What’s Next?
Possible settlement
If Trump makes concessions on electric vehicle incentives—such as restoring some subsidies—or Musk agrees to tone down his criticism in exchange for keeping SpaceX's launch contracts, the relationship between the two sides may still have room for improvement. After all, the competitiveness and innovation interests of the United States are their common ground.
2026 Election Impact
Musk’s strong financial resources and technological appeal may support the opposition within the Republican Party or influence technology-sensitive voters through platforms such as X. If their rift continues, Trump may face the risk of losing some key supporters.
Business strategy change
Tesla may reduce its reliance on federal subsidies and accelerate the development of overseas markets to diversify political risks. At the same time, SpaceX can strive for more commercial and international launch contracts as a hedge against the uncertainty of US policy changes.
Crypto Trends
If Bitcoin BTC continues to play a safe-haven role, we may see strong demand for the BTC/USDT trading pair and more interest in yield platforms like XT Earn . Conversely, crypto assets may also return to normal once market and political volatility subside.
in conclusion
The split between Trump and Musk shows that alliances based on the exchange of interests will fall apart once policies and personal demands conflict. The dispute over government spending, electric vehicle incentives and federal contracts not only tore apart the cooperation between the two heavyweights, but also triggered market shocks such as Tesla's stock price plummeting and Bitcoin prices and spot trading volumes surging. This highlights the deep interweaving of politics, big technology and finance - a tweet can set off a chain reaction in the boardroom and trading desk. As the two sides readjust their strategies, investors should pay close attention to policy trends and market signals. Whether it is the change in XT Earn 's yield or the fine-tuning of Bitcoin BTC sentiment, it may reveal the next wave of this high-stakes duel.
Frequently asked questions
What sparked the conflict between Trump and Musk?
It started with Musk criticizing the "Big, Beautiful Bill" for exacerbating the fiscal deficit, and Trump then threatened to cut electric vehicle incentives and SpaceX contracts - the policy dispute became the fuse.
How has Tesla's stock price reacted?
On June 6, Tesla’s stock price plummeted by more than 14%, its market value evaporated by about $138 billion, and Musk’s wealth lost about $34 billion on the same day.
What policy risks does Trump threaten?
He warned of the potential elimination or renegotiation of federal subsidies and NASA launch contracts that favor Musk’s businesses, taking direct aim at Tesla’s electric vehicle tax credits and SpaceX’s astronaut transportation deal.
Why is Bitcoin rebounding amid turmoil?
Investors turned to safe-haven assets to avoid stock market volatility, pushing up Bitcoin prices by nearly 8%.
How has the BTC/USDT trading volume changed?
From June 6 to 7, BTC/USDT spot trading volume on major exchanges surged by more than 35%, indicating that funds are pouring into the crypto market.
What role might XT Earn play in the future?
Amid political and market uncertainties, income platforms such as XT Earn may attract more capital to obtain passive income with digital assets.
