Original | Odaily Planet Daily ( @OdailyChina )
Author | Ethan ( @ethanzhang_web3 )
In the early morning of June 6, when the tech madman Musk dropped the bomb of Trump appears in the Epstein Files (a list of people who have committed crimes of sexually depriving minors by super-rich people and other upper-class people) on X, the entire American political arena and financial market held their breath. In just a few hours, the storm of the rupture of the Alliance of the Century has spread from the Oval Office to Meme coins, NFTs, Bitcoin, Tesla stock prices, and even U.S. Treasury bond interest rates.
Starting from around 23:00 Beijing time yesterday, Reuters reported that Musk criticized Trumps tax cut bill (the Big Beautiful Bill), saying that it would lead to debt slavery, Musk and Trump staged an unprecedented rebellion:
At 0:11 am today, Trump said: Even without Musk, I can win Pennsylvania. I am disappointed with Musk. I have helped him a lot. Musk is unhappy purely because the mandatory sales regulations of electric vehicles have been cancelled. He hasnt said bad things about me yet, but this will happen soon.
At 0:46, Musk said bluntly: Without me, Trump will lose the election, the Democrats will control the House of Representatives, and the Republicans will be at a 51-49 disadvantage in the Senate. How ungrateful.
At 2:41, Trump posted on Truth Social: The easiest way to save the budget would be to end government subsidies and contracts for Elon Musk, which would save billions of dollars. Im always surprised Biden doesnt do this.
At 3:18, Musk dropped the aforementioned public opinion nuclear bomb on X: Its time to drop the real big bomb. Trump appears in Epsteins documents. This is the real reason why these documents have not been made public. Have a good day, DJT!
Fifty minutes later, Trump posted on his social platform: I dont care about Musks opposition, but his position should have been made clear a few months ago. He called the bill currently submitted to Congress one of the greatest bills in history, including a record $1.6 trillion in spending cuts and the largest tax cuts in history. Trump warned that if the bill fails to pass, taxes will rise by 68%, there are worse things than this. He emphasized that he did not create chaos, but was committed to fixing problems and making the country great, and called for making America great again.
Musk then retweeted a discussion about Trump should be impeached and replaced by JD Vance and commented, Yes.
At 4:29, Musk posted on the X platform: Trump’s tariff policy will lead to an economic recession in the second half of this year.
Due to the sharp and intense remarks of the two, the crypto market experienced large fluctuations. After the incident, BTC, which was previously above $104,000, fell by more than $5,000 to nearly $100,000, a drop of about 5%. According to Coinglass data, during the peak period of the mutual attack between the two parties, the total amount of liquidation in the entire network reached $634 million within 4 hours, of which long orders were liquidated for $606 million and short orders were liquidated for $27.4918 million. James Wynn, the talkative king of the week, did not escape and was liquidated again , with a total contract position loss of 155.38 BTC.
However, just when the quarrel was at its most intense, the two reconciled - Musk retweeted Ackmans post calling for reconciliation, Trump also said in his latest interview that progress is going very smoothly , and White House aides have arranged a call between the two.
The two have calmed down, and the price of Bitcoin has also rebounded, now at $103,690.25. But the participants in the financial market have been badly affected by this drama.
In the U.S. stock market, Teslas stock price fell 15.8% in a single day, its market value evaporated by nearly $150 billion, and Musks personal assets shrank by nearly $20 billion; Trumps media company TMTGs stock price fell 7.82%, the confidence of conservative voters was shaken, and Trumps political brand became unstable.
Perhaps what we are seeing today is a premeditated confrontation, but more likely, Musk and Trump, the two men who are best at manipulating public opinion in the American power scene, have a head-on conflict over fiscal policy, commercial interests and the crypto power structure. The crypto communitys stance, the turmoil in the capital market, and the deduction of US fiscal policy have all become more complicated after this tear.
Previous
In 2024, Musk was one of the biggest donors to Trumps re-election campaign. Not only did he donate nearly $300 million to help Trump get elected, he also personally served as the head of the White Houses Department of Government Efficiency (DOGE), becoming a bridge between the technology circle and the political arena.
In May 2025, Musk’s ally Jared Isaacman was rejected as NASA director, the Starlink plan was rejected, and his extension as a “special employee” was rejected, gradually marginalizing the tech giant from the core of policy. On the 29th of the same month, Musk officially announced his departure from the Trump administration due to the pressure of the company’s operations (X server was repeatedly attacked, Tesla’s stock price in March was “halved” from its historical high, etc.).
However, in the spring of 2025, contradictions began to surface: Trumps Big Beautiful Bill planned to cancel electric vehicle subsidies and carbon credit mechanisms, directly cutting off Teslas profit pillar and angering Musk. What really ignited the fuse was Musks public call on the X platform on June 3rd that the bill was a disgusting deformed fiscal monster , which triggered the nuclear bomb-level tweet.
Opinions split, but Musk’s influence remains
Pershing Square CEO Bill Ackman stated that the two should put the national interest first and that cooperation would benefit both sides ;
Former Trump adviser Steve Bannon launched an extreme counterattack: calling for Musks green card to be revoked, for him to be deported, for his drug use to be investigated, and for all government contracts to be terminated;
Silicon Valley investor Naval Ravikant said on X: Musks position is principled. Trumps position is pragmatic. Current technology needs Republican support. Republicans need future technological development. Give up the tax cuts, cut some spending, and get the bill passed.
Although Musk is at the center of controversy, he still controls the narrative of the community, and each of his tweets affects the nerves of the crypto community and traditional capital markets.
Subsequent potential impact: policy, encryption and compound game
Policy direction: Risk of internal division within the Republican Party increases
With the Democrats collectively opposing the Big Beautiful Act, the Republicans can only lose three votes out of 53 seats in the Senate. Conservatives such as Rand Paul and Mike Lee have already clearly opposed it, and Musk has been forwarding their speeches to amplify his voice, so the prospects of the bill are full of uncertainty.
Musks influence on public opinion may further split the Republican fiscal hawks and centrists, resulting in substantial constraints on Trumps policy promotion in his second term.
Crypto Ecosystem: Trust in Trump’s Coin System Declines, New Factions Emerge
The Trump wallet incident has exposed the “multi-center out-of-control” situation within Trump’s crypto empire:
Fight Fight Fight LLC (Trump Meme) and WLFI belong to different family factions. The former deals with NFT and Meme, while the latter focuses on stablecoin USD1 .
The TRUMP Meme brand has been repeatedly sued for “counterfeiting” and the details of the MELANIA token are worrying.
I think it is foreseeable that Trump will rely more on stablecoins and RWA-type compliance projects, and the Meme Or NFT path that was once deeply bound to it may be marginalized.
Composite variable: Did the settlement actually take place?
Just as the farce was escalating, Musk and Trump suddenly reconciled, which was obviously surprising or unexpected.
Is it a true change of character? Or is it a bargaining chip to gain leverage through the game of public opinion? It remains to be seen. But what is certain is that:
Musk is no longer Trumps tool, but an independent political force.
This complex power conflict around finance, technology, and encryption may have just begun. And the statements of both sides will continue to manipulate the market.
