The cryptocurrency market dipped 3.1% over the past 24 hours amid a renewed public dispute between Tesla CEO Elon Musk and US President Donald Trump.
The escalation stems from Musk’s latest criticism of Trump’s proposed “big, beautiful bill,” prompting a sharp response from the President and reigniting tensions that have previously roiled financial markets.
Elon Musk and Donald Trump Clash Again
The conflict between Musk and Trump started again after the former posted a series of tweets criticizing the bill. He called it a “debt slavery bill” and condemned its supporters.
“Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame!” he said.
Musk expressed his commitment to taking all necessary actions to ensure that these politicians are defeated in their primary elections next year, emphasizing his determination to hold them accountable for their actions. He also stressed that the bill could have detrimental debt implications.
“It is obvious with the insane spending of this bill, which increases the debt ceiling by a record FIVE TRILLION DOLLARS, that we live in a one-party country – the PORKY PIG PARTY!! Time for a new political party that actually cares about the people,” he posted.
The billionaire, who strongly backed Trump in the presidential elections, even called for the creation of a new political party.
“If this insane spending bill passes, the America Party will be formed the next day. Our country needs an alternative to the Democrat-Republican uniparty so that the people actually have a VOICE,” he added.
The string of attacks prompted President Trump to respond. He accused Elon Musk of benefiting from excessive government subsidies and suggested that Musk’s businesses would struggle to survive without them.
“Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa. No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE. Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!” Trump wrote.
The crypto market has felt the initial tremors of this fallout. 5 of the top 10 coins have recorded losses over the past 24 hours, with Musk’s favorite, Dogecoin (DOGE), leading the dip. Bitcoin (BTC) and Ethereum (ETH) have recorded modest losses over the past day.
BeInCrypto’s analysis revealed that Bitcoin is facing downward pressure and could see additional declines if the current bearish trend continues. It is worth noting that while the impact remains contained so far, historical patterns suggest potential for deeper volatility.
In June 2025, the Musk-Trump spat saw the market fall by 5.1% and triggered nearly $1 billion in liquidations. Thus, if the conflict escalates, the market may have to bear the brunt of it.
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