Crypto markets dip on public Musk and Trump spat

Key takeaways

🚀 Musk vs Trump: A public spat between Elon Musk and Donald Trump.

📉 Market slide: Major coins see declines.

📊 Cooling sentiment: Technical indicators and investor sentiment remain largely neutral.

📰 Macro watch: Upcoming US jobs data and Fed rate decision could be key market movers.

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There’s beef between former Department of Government Efficiency (DOGE) commander Elon Musk and US President Donald Trump. The two were involved in a war of words after Trump mentioned his disappointment in Musk, to which Musk responded with some wild accusations against Trump.

Anyway, the public tit-for-tat apparently rattled markets, leading to further liquidations of long positions and adding more pressure on the general market. Bitcoin (BTC) is down 1.6% overnight, with Ethereum (ETH) in the red by around 5%. Dogecoin (DOGE) tumbled 7% over 24 hours, while Official Trump (TRUMP) fell more than 10%.

Beyond the above theatrics, most other indicators point to a cooling trend that started more than a week ago, with investors holding out for clearer signs beyond the current simmering tensions caused by the tariff wars and their potential inflationary impact. The Fear and Greed Index continues to reflect neutral sentiment, while the Relative Strength Index hovers somewhere between overbought and underbought. 

US jobs numbers are due later today, which usually serve as a precursor to CPI inflation data, and then the big one: the Fed interest rate decision, expected later this month. The Fed is increasingly likely to stay its hand again, keeping rates unchanged, barring any very unexpected numbers from the previously mentioned reports.

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In the markets… 

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🌍 Total crypto market cap ⬇️

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The global cryptocurrency market capitalisation is approximately $3.22 trillion, reflecting a 2.01% decrease over the last 24 hours.

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🟠 Bitcoin (BTC) ⬇️

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Price: Currently trading at around $102,954, marking a 1.62% decrease in the last 24 hours.

Daily high: Approximately $105,766

Daily low: Approximately $100,436

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📈 S&P 500 ⬇️

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The S&P 500 index is down by about 0.53% since yesterday.

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😐 Fear & Greed Index

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The Crypto Fear & Greed Index currently stands at 46/100, indicating a neutral sentiment among investors.

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📊 Bitcoin Relative Strength Index (RSI) (14)

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The RSI for Bitcoin is approximately 42, with 70 and above indicating an overbought position, while 30 and below indicates that the asset is oversold.

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‍Post Script…

Richard Teng on X: "The tide has turned. The SEC’s case against us is dismissed - justice, finally. Huge credit to Chairman Atkins and the Trump administration for standing up to regulatory overreach. The U.S. is back in the arena, ready to lead the world in blockchain innovation." / X

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BitcoinOS on X: "Litecoin is coming home to Bitcoin. 🟠🤝⚪️ BOS is officially activating @CharmsDev and ZK rollups on @litecoin, bringing its magical, programmable tokens and *bridgeless* bridging to Bitcoin’s silver twin. The UTXO renaissance is real—and it's uniting the old guard. 🧵👇 https://t.co/copF0S10k0" / X

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Conor McGregor on X: "I want to build on the amazing feats president @nayibbukele has achieved in El Salvador. Germany dropped the ball - Ireland will not. Using crypto, I plan on establishing a decentralised blueprint for sovereignty. One that others can also adopt to reclaim their nations. I" / X

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KULA on X: "Most projects launch first and worry about regulations later. Kula did the opposite. We built with compliance from day one. Legal frameworks, KYC, AML, all baked in, because real assets require real structure. That’s what makes Kula different. https://t.co/r8uopFwqcx" / X

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Cautionary Notes

‍‍It's definitely tempting to get swept up in the excitement, but please heed these words of caution: Do your own research, only invest what you can afford, and make good decisions. The indicators contained in this article will hopefully help in this. Remember though, the content of this article is for information purposes only and is not investment advice or any form of recommendation or invitation. The Digital Commonwealth always advises you to obtain your own independent financial advice before investing or trading in cryptocurrency.