Trouble in the Whitehouse: Trump and Musk Fallout

Crypto markets took a sharp turn as tensions between the White House’s dynamic duo, President Donald Trump and his long-time ally Elon Musk, boiled over into a very public feud. Once seen as inseparable during the campaign trail, with Musk widely credited as a pivotal force behind Trump’s November victory, the alliance appears to have unravelled.

Only months ago, they were side by side in the Oval Office, Trump signing executive orders favouring Tesla, and even granting Musk leadership of a bespoke agency, the Department of Government Efficiency (DOGE). But the political honeymoon is over.

Rumours had been circulating that Musk had exited the Trump administration. Those whispers turned to headlines overnight as both figures fired shots across social media, Musk on X, Trump on Truth Social. The back-and-forth barbs left little doubt: the bromance is dead.

Markets React with Volatility

The political drama injected a fresh wave of uncertainty across markets, compounding already fragile sentiment from escalating Eastern European tensions and rocky tariff negotiations. Risk appetite dried up.

Traditional indices closed red across the board. Tesla, in particular, plunged nearly 15%, a sharp outlier driven by the fallout. In crypto, the pain was more measured but no less meaningful. Bitcoin slid 3%, Ethereum fell 7.5%, and altcoins bled deeper. The Fear & Greed Index for Bitcoin dropped to 45, slipping back into "fear" territory for the first time since late April.

Stormrake Spotlight: Bittensor (TAO) ($358)

TAO shed nearly 8% yesterday, mirroring the broader market sell-off. Bears have seized control, with structure and momentum both shifting against bulls. Should Bitcoin’s correction deepen, TAO may target the $329 level next. Watch BTC for cues.

BTC/USD Key Levels and Price Action:

Bitcoin has broken down from its consolidation range, flipping both momentum and structure in the bears’ favour. The bottom of the range failed to hold, with BTC now retesting the $100,000 level, critical support that must hold to avoid a deeper correction.

BTC Total ETF Flows for 5 Jun: $ - 278.4 million

*All prices are denominated in USD unless stated otherwise*

Written by Alexandar Artis

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