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Key Takeaways:
- The Trump–Musk standoff could trigger broader market fears if policy threats escalate.
- Watch Bitcoin’s $107K and the TOTAL market cap’s $3T support as sentiment pivots.
- If Musk follows through with forming a new party, the crypto community could face a new wave of political volatility.
The cryptocurrency market has once again been swept into political turbulence as tech titan Elon Musk and former U.S. President Donald Trump resume their high-profile rivalry. The renewed feud, triggered by a $5 trillion debt ceiling proposal, has already caused notable volatility across digital assets, with Bitcoin dipping below $107,000 and nearly $200 million in crypto positions liquidated in a single day.
Debt Ceiling Turmoil: “The Porky Pig Party”
At the center of the controversy lies a GOP-endorsed $5 trillion debt ceiling hike — an unprecedented move slammed by Elon Musk as “insane and destructive.” The billionaire went as far as labeling Republicans the “Porky Pig Party” and threatened to form a new political movement, the America Party, if the bill passes.
What’s the point of a debt ceiling if we keep raising it?
— Elon Musk (@elonmusk) July 1, 2025
Musk’s outburst reflects deep dissatisfaction with Republican lawmakers, whom he accuses of betraying their fiscal conservative roots. His threats and rhetoric have added political uncertainty, contributing to the crypto market’s dip as investor confidence wavers.
Trump Responds: “No More Rockets or Teslas”
Trump fired back on Truth Social, suggesting a crackdown on federal subsidies supporting Musk’s businesses, including SpaceX and Tesla. He even invoked a jab at the tech mogul’s roots, stating that Musk might have to “head back home to South Africa” without government support.
Further escalating tensions, Trump proposed that the Department of Government Efficiency (D.O.G.E.) audit all federal contracts awarded to Musk. In response, Musk shot back bluntly: “CUT IT ALL. Now.” The public fallout between two of crypto’s most vocal supporters has left markets rattled.
Crypto Market at a Technical Crossroads
Despite the political noise, technical analysis suggests the long-term crypto bull cycle remains intact. Analyst shakatrade1_618 noted that the market cap recently performed a textbook retest of the $3 trillion resistance zone, now acting as support.
Volume and VWAP analysis also show strong positioning above key levels. However, early signs of distribution are emerging, and the Point of Control (POC) lies just beneath current prices — a potentially bearish signal if breached.
Fibonacci extension levels at $3.74T, $4.22T, $4.71T, and $5.01T remain the next major targets, should momentum continue. But if political drama persists, these targets may be delayed.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
