The escalating rivalry between Elon Musk and Donald Trump is shaking up the cryptocurrency market, leading to a 3.1% drop in 24 hours. Their verbal sparring is impacting the volatility, especially for Dogecoin and Bitcoin. Delve into this analysis to grasp the implications and foresee the upcoming trends.
As the rivalry between Elon Musk and Donald Trump resurfaces, the cryptocurrency market is feeling the consequences. A 3.1% drop in 24 hours highlights the challenges ahead.
The conflict between the two influential figures has intensified after Musk harshly criticized Trump’s bill, calling it a “debt slavery law.” This attack didn’t go unnoticed, prompting Trump to retaliate by questioning the subsidies granted to Musk’s companies.
This public confrontation has triggered significant volatility in the crypto market, with 5 of the top 10 cryptocurrencies recording losses for the day. Dogecoin, Musk’s favorite cryptocurrency, has been particularly hard hit.
Analysts agree that Bitcoin is facing downward pressure and could experience further declines if the current trend continues. Although the impact is limited for now, historical precedents suggest increased volatility if the Musk-Trump conflict were to worsen.
Last June, their disagreement led to a 5.1% drop in the crypto market and nearly one billion dollars in liquidations. The scenario could repeat itself, with potentially greater repercussions across the entire sector.
From a technical perspective, Bitcoin has lost its crucial support at $107,200, which should lead to a deeper fall with a potential support zone between $104,800 and $103,500.
With these persistent tensions between two leading figures, crypto investors must exercise increased caution. Market evolution remains uncertain, and it will be crucial to closely monitor upcoming developments to make informed decisions.
Beyond price movements, this confrontation also raises broader questions about the influence of political and entrepreneurial personalities on the cryptocurrency sector. A topic worth following closely in the coming months.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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