The volatile cryptocurrency market witnessed a significant downturn for key assets this week, with Bitcoin experiencing a notable drop and the TRUMP meme coin suffering a substantial decline. This market fluctuation coincided with a period of intensified public and private disputes involving President Donald Trump, suggesting that high-profile political and personal conflicts can have tangible ripple effects across digital asset valuations, particularly for politically-themed tokens.
Market Reaction Amidst Political Tensions
Bitcoin registered a decline to $100,423, marking a 4% dip, while the TRUMP meme coin experienced a 12% fall, reaching $9.67, according to CoinGecko data. This market movement transpired amidst a challenging period for President Donald Trump, characterized by significant public confrontations and an internal dispute within his associated crypto ventures.
The High-Profile Clash with Elon Musk
The long-standing relationship between President Trump and Elon Musk deteriorated dramatically. This rift stemmed from Musk’s opposition to a Republican-backed tax bill stalled in the Senate, which included provisions like the removal of EV tax credits, alongside Trump’s decision to block Musk’s NASA nominee. President Trump publicly criticized Musk, labeling him “crazy” and indicating a review of federal contracts with companies like Tesla, SpaceX, and xAI. Musk swiftly retaliated on his X account, asserting his crucial role in Trump’s past electoral success. This public exchange intensified, creating ripple effects across the digital asset market.
Internal Battle Over TRUMP Crypto Projects
Concurrent with the presidential disputes, an internal family conflict erupted concerning Trump-themed cryptocurrency projects. President Trump’s sons initiated legal action against Fight Fight Fight, the entity behind the TRUMP meme coin, led by Bill Zanker. This dispute centered on Fight Fight Fight’s launch of an unauthorized “$TRUMP Wallet” in collaboration with Magic Eden, intended for holding and trading the TRUMP coin. World Liberty Financial, a firm managing significant Trump family investments, issued cease-and-desist letters to both Fight Fight Fight and Magic Eden, asserting unauthorized use of the Trump name. Donald Trump Jr. and Eric Trump publicly distanced themselves from the project, emphasizing its lack of family approval. It was later revealed that World Liberty Financial was developing its own crypto wallet, designed to offer yield-earning opportunities for users. The unauthorized “$TRUMP Wallet” project experienced significant online instability, with its associated X account facing suspension shortly after launch, despite Fight Fight Fight’s efforts to promote it through giveaways.
The Landscape of Trump-Linked Digital Assets
Fight Fight Fight is a notable player in the Trump-themed crypto space, having launched the successful TRUMP meme coin in January, which has generated over $300 million in fees. This entity, alongside CIC Digital LLC, controls 80% of the token’s supply, currently valued at $1.7 billion on CoinMarketCap. Bill Zanker, representing Fight Fight Fight, has actively promoted the token, even organizing events where President Trump addressed top holders.
In contrast, the Trump family, through World Liberty Financial, is pursuing a different vision for their digital asset ventures. World Liberty Financial has successfully raised $550 million through token sales and introduced USD1, a U.S. dollar-pegged stablecoin with a market capitalization of $2.2 billion. Financial records indicate that a Trump-affiliated company receives 75% of the net revenue from these ventures, with the Trump family holding a 60% equity stake in World Liberty via DT Marks DeFi LLC.
Senior Crypto Correspondent with over 8 years of experience covering Bitcoin, altcoins, and blockchain technology for leading financial publications. Alexander holds a master’s degree in Financial Economics and specializes in in-depth market analysis, regulatory updates, and interviews with top industry figures.