In yesterday morning’s analysis of Tesla (TSLA) shares, we mentioned the emerging conflict between Donald Trump and Elon Musk, highlighted by Musk’s:
→ criticism of a government spending bill;
→ dissatisfaction with staffing decisions at NASA;
→ resignation from his position as head of the DOGE department.

Over the course of the day, the rift deepened, impacting not only TSLA stock (which closed the session down by 14.26%) but also the cryptocurrency market, where both Trump and Musk wield significant influence.

According to media reports:
→ During a 5 June meeting at the White House with the German Chancellor, Trump said he was very disappointed in Elon and that he had helped him a lot
→ In response, Musk posted sharply on X, accusing Trump of ingratitude and claiming that without him, Trump would have lost the election

This exchange marked the breakdown of what was once a powerful alliance forged during Trump’s re-election campaign — an alliance that had helped push Bitcoin to an all-time high of $100,000.

Now, the public fallout between Musk and Trump is fuelling market volatility — Bitcoin’s price dropped yesterday to its lowest level in roughly a month.

Technical Analysis of the BTC/USD Chart

Bitcoin price fluctuations are forming a broad ascending channel (shown in blue), while the decline from the all-time high on 22 May is shaping a local descending channel (shown in red), which appears to be a corrective phase within a larger uptrend. On 22 May, we highlighted the likelihood of this correction developing.

So, what’s next? Bulls may look to the lower boundary of the blue channel and the psychological $100k mark for support. But will that be enough to halt the correction and revive the rally within the larger bullish channel on the BTC/USD chart? Much will depend on whether Trump and Musk can reach an understanding and reconcile.

FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage — at your service. Open your trading account now or learn more about crypto CFD trading with FXOpen.

*Important: At FXOpen UK, Cryptocurrency trading via CFDs is only available to our Professional clients. They are not available for trading by Retail clients. To find out more information about how this may affect you, please get in touch with our team.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.