Published On: July 1, 2025

Crypto Market Waves as Elon Musk vs President Donald Trump 2.0 Heats Up

The cryptocurrency market remains volatile, as Elon Musk threatens to launch a new political party if Republicans boost spending and raise the US debt ceiling further. Musk has lambasted Donald Trump’s Republican Party for proposing a $5 trillion debt ceiling increase, the highest in US history. The price of Bitcoin (BTC) is down 1.22% today, while altcoins are experiencing a similar dip.

Crypto Market Waves as Elon Musk vs President Donald Trump 2.0 Heats Up

Republican Spending Sparks Musk’s Outrage

Although Elon Musk and Donald regrouped after trading harsh barbs on the X platform last month, Musk is once again criticizing the Republican spending measure, which boosts the debt ceiling by a staggering $5 trillion. In addition, US President Donald Trump has asked for a Fed rate reduction to 1% as part of a large economic stimulus package. However, Musk believes that enacting this large spending plan will just raise the US debt ceiling, making matters worse for Americans and driving inflation higher.

On-Chain Data Paints a Bleak Picture

Additionally, on-chain data shows that miners and long-term holders have been pressuring Bitcoin to sell. Analysts believe that BTC’s perceived demand has become negative, indicating weakening.

Trump’s “One Big Beautiful Bill” and Musk’s Rebuttal

However, US President Donald Trump has suggested a comprehensive “One Big Beautiful Bill” to prolong his expiring first-term tax cuts, which is expected to cost $4.5 trillion. The X founder calls it the DEBT SLAVERY Bill, writing:

“The crazy spending in this law, which raises the debt ceiling by a record FIVE TRILLION DOLLARS, demonstrates that we live in a one-party country the PORKY PIG PARTY!!” A new political organization that genuinely cares about the people is needed.

Musk’s Threat: Launching the America Party

While alluding to Republicans, Musk stated that all Congress members who ran on decreasing the bill and then abruptly reversed 180% to reveal the largest debt rise “should hang their heads in shame.” Musk further stated that he would make a push if these legislators lost their primaries next year, in 2026.

Elon Musk indicated that if Congress adopts the big spending plan presented by Republicans, he will instantly start the “America Party” the next day, initiating a political battle with his former close buddy, Donald Trump.

“The America Party will be established the following day if this ridiculous spending plan is successful.” Musk wrote, “Our nation needs an alternative to the Democrat-Republican uniparty so that the people can have a VOICE.”

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Crypto Market on Standby

Investors in the cryptocurrency market are currently waiting for events to develop. Investors are increasingly focused on the House adopting the GENIUS stablecoin Act and Trump signing it into law.

Did you know? Political uncertainty often creates sudden surges or dips in crypto prices, making decentralized governance a hot topic in Web3 circles.