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.
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