- Due to crypto market crash Bitcoin ETFs lost $278 million after the Trump-Musk feud made headlines.
- Fear took over the crypto market crash, pushing prices and confidence down.
- Ethereum ETFs kept gaining for 14 days, even as Bitcoin slipped.
The crypto market crash was hit with fresh volatility as tensions mounted between U.S. President Donald Trump and tech billionaire Elon Musk, two powerful individuals whose public spat has rocked investor confidence.
U.S. Bitcoin ETFs registered a dramatic reversal on June 5, posting outflows of $278 million. The fall followed the initial recovery during June 3–4 and came on the heels of the record $1.2 billion exodus between May 29 and June 2.
Greed to Fear
In line with data from SoSoValue, the shift in sentiment also happened at the same time that there was a reversal in the Cryptocurrency Fear & Greed Index, which moved from “Greed” to “Fear“ for the first time in weeks.
The deterioration of the previously aligned Trump-Musk relationship seems to be a primary driver. Their public spat, which was sparked by differing opinions on a government appropriations bill and aggressive social media attacks, has spilled over into market action.
Tesla stocks collapsed 14%, and Trump Media shares declined 8%, indicating that the impact of the schism is not only being felt in the crypto space.
Meanwhile, Ether ETFs told a different story. Where Bitcoin products were bleeding capital, Ether ETFs extended their 14-day run of inflows at a slower rate. June 5 reported $11.3 million in inflows down from $56.9 million and $109.4 million on the two prior days, but still sufficient to note resilience in Ethereum-based products.
Institutional faith in Ether also seemed stable, with BlackRock allegedly buying $50 million of Ether on June 3. With no near-term resolution on the horizon between Trump and Musk, the crypto market crash may stay skittish and investors are preparing for more volatility down the road.
Highlighted Crypto News Today
SUI Price Faces $2.71 Target as Third Resistance Rejection Triggers 25% Decline
