The cryptocurrency market is becoming increasingly turbulent as the conflict between U.S. President Donald Trump and Tesla CEO Elon Musk intensifies.

• Late Thursday, Bitcoin BTC was reported at $100,500, down over 4%, and approaching the five-digit range for the first time in a month.

• The CoinDesk 20 index has also seen a decline of approximately 5%, significantly impacted by SOL and SUI, with many crypto stocks, including Coinbase and mining firms, also suffering losses.

Continuing the saga, tensions escalated over the GOP tax and spending bill, resulting in Trump accusing Musk of going ‘crazy’ and issuing threats to terminate government contracts award to Musk’s companies.

In a fiery response, Musk retorted with claims linking Trump with the infamous Jeffrey Epstein incident and hinted at serious actions regarding SpaceX operations. The fallout saw Tesla’s stock dropping by more than 14%.

As investors react to these developments, the crypto market was already under pressure due to Circle’s IPO. This event, initially filled with optimism, mirrored a previous high during Coinbase’s IPO in 2021. Circle’s opening priced at $31, surged above $100 before settling at $83 by the end of the day.