Trump-backed $TRUMP tumbled 9.50% in the last 24 hours to trade at $9.82 at press time. The coin, which is a namesake meme token for the former president, is now down 87% from its all-time high on Inauguration Day.

The market behemoth faced a triple whammy with Trump’s threat to cancel federal subsidies and contracts for Musk’s companies, and the tech mogul’s integration of the former president’s tax plan in a new crypto project.

This thinly veiled threat rattled investors who had long bet on Musk’s close ties to Washington and sparked a 14% plunge in Tesla (NASDAQ:TSLA) stock, wiping out $150 billion in market value.

Some of the drop may be attributed to regulatory uncertainty around Tesla’s upcoming robotaxi program, but analysts believe the feud with Trump was a significant trigger for the stock's decline.

"There is a fear that Trump is not going to play Mr. Nice Guy," said Dan Ives, a tech analyst at Wedbush Securities. "If you start to heighten the regulatory environment, that could delay Tesla's roadmap for autonomous driving."

In after-hours trading, Tesla stock saw a modest 0.8% rebound, but the damage had been done.

Meanwhile, the market reacted to the crypto project, in which Musk integrated his signature and Trump’s tax plan in a new STEPN derivative, with a 360% surge in a satirical coin named "Kill Big Beautiful Bill" on Pump.fun.

The project aims to raise funds for a Trump campaign contribution, highlighting the rapid mobilization of crypto communities towards political causes.

Meme coin volatility highlights market fragilitySharp declines in $TRUMP and Dogecoin are a stark reminder of how susceptible meme coins are to sentiment and social media-driven volatility.

Kevin Rusher, founder of Real World Asset, described the market's reaction as both "annoying and revealing."

"It's annoying because we're still letting loud personalities move the market," Rusher said. "Revealing, because it shows the crypto ecosystem is still fragile and in desperate need of liquidity."

While Bitcoin (BTC) was relatively more stable, dipping just under 2% to trade around $105,023 at press time, some analysts warn that the ongoing uncertainty could lead to further short-term pain.

"Bitcoin is testing the $100,000 support level," noted Nic Puckrin, founder of Coin Bureau. "If we see a break below, there could be more downside. That said, a close above $102,000 would suggest the worst of the sell-off is behind us."

The Trump-Musk fallout is more than a billionaire brawl—it's a collision of politics and markets.

Tesla's recent stock gains were largely driven by investor optimism that the Trump administration would support autonomous vehicle innovation. Musk's public distancing from Trump and vocal criticism of government policies have now called that support into question.

This fusion of political will and market stability is at the heart of the ongoing drama.

Trump’s namesake meme coin, $TRUMP, plunged nearly 10% in 24 hours and is now down 87% from its all-time high on Inauguration Day. Similarly, Dogecoin (DOGE), often associated with Musk, dropped 6% on the same day, continuing its long descent from its peak in 2021.

"The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts, " Trump posted on Truth Social, implying potential federal action against Musk's companies.

This thinly veiled threat rattled investors who had long bet on Musk’s close ties to Washington and sparked a 14% plunge in Tesla stock, wiping out $150 billion in market value.

Some of the drop may be attributed to regulatory uncertainty around Tesla's upcoming robotaxi program, but analysts believe the feud with Trump was a significant trigger for the stock's decline.

"There is a fear that Trump is not going to play Mr. Nice Guy," said Dan Ives, a tech analyst at Wedbush Securities. "If you start to heighten the regulatory environment, that could delay Tesla's roadmap for autonomous driving."

In after-hours trading, Tesla stock saw a modest 0.8% rebound, but the damage had been done.

Meanwhile, the market reacted to the crypto project, in which Musk integrated his signature and Trump's tax plan in a new STEPN derivative, with a 360% surge in a satirical coin named "Kill Big Beautiful Bill" on Pump.fun.

The project aims to raise funds for a Trump campaign contribution, highlighting the rapid mobilization of crypto communities towards political causes.

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