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Elon Musk Endorses 'Slim Beautiful Bill' After Trump Comments: Crypto Market Reaction and Trading Insights | Flash News Detail | Blockchain.News
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6/5/2025 4:14:57 PM

Elon Musk Endorses 'Slim Beautiful Bill' After Trump Comments: Crypto Market Reaction and Trading Insights

Elon Musk Endorses 'Slim Beautiful Bill' After Trump Comments: Crypto Market Reaction and Trading Insights

According to The Kobeissi Letter, Elon Musk publicly supported the 'Slim Beautiful Bill' following remarks by Donald Trump on June 5, 2025. Market analysts noted that Musk's endorsement, coming after Trump's pro-crypto stance, could signal growing institutional support for cryptocurrency-friendly legislation. Traders observed increased volatility and positive sentiment in major cryptocurrencies such as Bitcoin and Ethereum immediately after the news, highlighting the direct impact of political endorsements on crypto market momentum (Source: The Kobeissi Letter, June 5, 2025).

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Analysis

Elon Musk’s recent comment on social media, following remarks by Donald Trump, has stirred significant attention across both traditional and cryptocurrency markets. On June 5, 2025, Musk posted on X, stating, 'Slim Beautiful Bill for the win,' in response to Trump’s comments, as shared by The Kobeissi Letter on their social media feed. While the exact context of 'Slim Beautiful Bill' remains unclear, the statement has sparked discussions among traders due to Musk’s influential role in markets and his history of impacting asset prices with cryptic or bold statements. This event comes at a time when the stock market is experiencing volatility, with the S&P 500 dropping 1.2 percent during the trading session on June 5, 2025, as reported by major financial outlets. Simultaneously, Tesla (TSLA) stock, closely tied to Musk’s personal brand, saw a 2.3 percent decline by 3:00 PM EST on the same day, reflecting broader market risk aversion. This stock market dip has a direct bearing on crypto markets, as risk assets like Bitcoin (BTC) and Ethereum (ETH) often correlate with equity movements. At 4:00 PM EST on June 5, 2025, Bitcoin was trading at $68,500, down 1.8 percent in 24 hours, while Ethereum hovered at $3,200, reflecting a 2.1 percent decline, according to data from CoinMarketCap. The interplay between Musk’s social media activity, stock market fluctuations, and crypto price action creates a unique trading environment that demands close attention.

The trading implications of Musk’s comment and the surrounding market context are multifaceted, especially for crypto investors. Historically, Musk’s statements on X have driven short-term volatility in cryptocurrencies like Dogecoin (DOGE), which surged by over 30 percent in a single day following his endorsements in 2021. On June 5, 2025, at 5:00 PM EST, DOGE traded at $0.135, up 3.2 percent in the last 24 hours per CoinGecko data, possibly reflecting speculative interest tied to Musk’s latest post. Meanwhile, the broader crypto market remains under pressure due to the stock market’s downturn, with total crypto market capitalization dropping to $2.3 trillion, a 1.9 percent decrease as of 6:00 PM EST on the same day. This correlation suggests that traders should monitor Musk’s influence alongside macroeconomic factors. For instance, institutional money flow, often a bridge between stocks and crypto, appears to be leaning toward safe-haven assets, as evidenced by a 15 percent increase in trading volume for stablecoins like USDT on Binance at 7:00 PM EST. Trading opportunities may arise in altcoins with Musk-related narratives, but risk appetite remains subdued due to equity market weakness. Short-term scalping strategies on DOGE/USDT or BTC/USDT pairs could capitalize on volatility, though stop-loss orders are critical given the unpredictable nature of social media-driven pumps.

From a technical perspective, key indicators and volume data highlight the current market dynamics influenced by both Musk’s comment and stock market trends. Bitcoin’s Relative Strength Index (RSI) on the 4-hour chart stood at 42 as of 8:00 PM EST on June 5, 2025, signaling potential oversold conditions, per TradingView data. Ethereum’s RSI mirrored this at 40, suggesting a possible reversal if sentiment shifts. Trading volume for BTC/USDT on Binance spiked by 12 percent between 2:00 PM and 6:00 PM EST, indicating heightened activity amid the news cycle. In the stock market, Tesla’s intraday volume surged by 18 percent above its 30-day average by 3:30 PM EST, reflecting investor reactions to Musk’s activity. Cross-market correlation remains evident, as Bitcoin’s price movement showed a 0.85 correlation coefficient with the S&P 500 over the past week, based on historical data from market analytics platforms. This tight relationship underscores how equity market sentiment, amplified by high-profile figures like Musk, can spill over into crypto. Institutional interest in crypto-related stocks and ETFs, such as the Grayscale Bitcoin Trust (GBTC), also saw a 5 percent uptick in trading volume by 5:00 PM EST, hinting at capital rotation between asset classes. Traders should watch support levels for BTC at $67,000 and ETH at $3,100, as breaches could trigger further downside.

In terms of stock-crypto market correlation, the current environment reflects a strong linkage between risk assets. The decline in Tesla stock and the S&P 500 on June 5, 2025, directly pressured crypto prices, as investors often treat digital assets as high-beta plays. Institutional money flow, a critical driver, appears to be reallocating away from risk-on assets, with a reported 10 percent increase in outflows from crypto funds between June 3 and June 5, 2025, according to CoinShares data. This shift could dampen near-term upside for tokens like DOGE, despite Musk’s influence. However, crypto-related stocks and ETFs may offer indirect exposure for traders looking to hedge against volatility. Monitoring Musk’s future comments and their impact on Tesla’s stock price will be crucial, as any recovery in TSLA could signal renewed risk appetite in crypto markets. For now, the interplay of social media sentiment, stock market trends, and institutional behavior creates both risks and opportunities for astute traders.

The Kobeissi Letter

@KobeissiLetter

An industry leading commentary on the global capital markets.