Musk vs. Trump: The Political Battle That Causes Bitcoin to Plummet

Bitcoin seems to have taken another hit as the political storm of Elon Musk and Trump intensifies. The new feud surrounding Trump's "Beautiful Bill" has spread across social media and the broader market, pushing BTC out of its range and into the liquidation zone. This is not just another political drama. Musk's increasing opposition to Trump's fiscal policy, combined with the threats of a new political party and Trump's comments on government subsidies, has created a macro context. Traders are now watching the level of $106,100 as pressure builds. Bitcoin dropped sharply as the market reacted to the political collapse. Bitcoin fell after Musk publicly criticized the bill supported by Trump. After criticizing lawmakers who supported the bill for being "sellouts", Musk stated that those responsible should "hang their heads in shame" and be defeated in next year's primary elections. This stirred the political market with traders thinking that the increase in instability could lead to a flight from high-risk assets like cryptocurrencies. At the time of the press release, Bitcoin is trading at $106,827, down 0.91% for the day. The highest in 24 hours is $108,317 and the lowest is $106,759. Current technical factors are viewing $106,100 as an important liquidity zone. If broken, it could unlock a series of long liquidation orders on leveraged positions and bring Bitcoin back to the $104,000 - $105,000 level.

Musk vs Trump: The political firestorm shakes the market The feud between Elon Musk and Trump reignited over the weekend after Trump's spending bill was criticized. Trump called it the "Beautiful Big Bill." On the other hand, Musk campaigned against what he called irresponsible financial expansion. On July 1, Musk posted a poll on X asking whether a new political party was needed. More than 80% responded yes, raising speculation that Musk might be seriously considering an independent political movement. He did not mention Trump in the post, but his subsequent comments made it clear that Trump was on his radar.

Musk called the politicians supporting the bill hypocrites, saying they had abandoned their promise to cut government spending. His threat that they would be defeated in the primary elections only fueled the anger further. Trump did not hold back. He posted on Truth Social that the subsidies for Musk's companies, particularly in the electric vehicle sector, could be reassessed. "DOGE may consider cutting subsidies for Elon Musk," he wrote.

Musk replied: "CUT EVERYTHING. Right now." He stated that government spending must be cut and no one should receive special treatment, including himself. This has caused a significant drop in Tesla shares, with TSLA closing at $317.66 on Monday, down 1.8% and then falling to $311.19 after hours. Bitcoin feels shocked: Traders prepare for volatility The impact on Bitcoin seems indirect, but analysts believe it is all due to the general market sentiment. Musk is one of the most influential voices in the cryptocurrency space, and any macro tensions related to him create waves in the digital asset market. His influence on Dogecoin and even Bitcoin has been clearly documented, from price increases to sudden volatility following a single tweet. "Bitcoin is walking a tightrope here," said CryptoQuant analyst Ki Young Ju. "Technical support at $106,000 is very thin and the political situation has added to the instability." Furthermore, fears about increased regulatory targeting, especially if political pressure shifts to tech billionaires, will reduce risk appetite across the entire cryptocurrency space. Liquidity is dwindling in an uncertain political environment, and this week's headlines may push institutional investors to the sidelines. The funding rates on major exchanges have turned negative, indicating bearish sentiment among leveraged traders. If the price drops below $106,100 with volume confirmation, many expect to test the zone of $104,000, which was a support level in mid-June. Conclusion: Bitcoin declines as politics disrupts the market The price of Bitcoin falling this week is no longer just a technical issue, but also a matter of perception, influence, and the increasing tension between the two most divisive figures in America. Elon Musk's public challenge to Donald Trump's financial agenda and the threat to form a new political party has caused panic in the market. Tesla stocks are plummeting and Bitcoin is near a key support level. For cryptocurrency traders, the coming days will determine whether Bitcoin can hold above $106,000 or will face a stronger correction.