Bitcoin Drops 1.34% as Musk Trump Feud Intensifies

Bitcoin's price dipped below the key $107,000 level as the feud between billionaire Elon Musk and Donald Trump intensified. This escalation provided traders with a reason to support a drop in Bitcoin's price, which had been range-bound for several days. Musk has been vocal in his opposition to Trump's policies, particularly the "Big Beautiful Bill," threatening to establish or support a new political party if the bill is passed. On July 1, Musk shared the results of a poll on his social media platform, which showed over 80% support for a new political party.

Musk's criticism of Trump's policies has been relentless. On Monday, he ramped up his criticism, stating that lawmakers who had campaigned on cutting spending but backed the bill "should hang their heads in shame!" He further added that these lawmakers would lose their primary next year if it were the last thing he did on Earth. In response, Trump posted on his Truth Social account that DOGE may look into cutting Elon Musk subsidies, acknowledging Musk's criticism of the EV mandate.

Musk's response was swift and decisive, calling for the government to "CUT IT ALL. Now," emphasizing the need for significant spending cuts rather than merely raising the debt ceiling. The renewed feud between Musk and Trump has had a noticeable impact on the financial markets, with Tesla's stock price dipping more than 10% in a week. At the time of writing, Bitcoin's price was trading 1.34% down at $106,834, with the 24-hour low and high being $106,759 and $108,317, respectively. Traders are closely watching the $106,100 level, as breaking this level could trigger significant liquidations.

The ongoing dispute between Musk and Trump has broader implications for the political and economic landscape. Musk's influence extends beyond the tech industry, and his actions can have a significant impact on various sectors, including cryptocurrency. The feud has created a sense of unease among investors, who are closely monitoring the situation for any signs of escalation or resolution. The cryptocurrency market is known for its volatility, and the current situation is no exception. The renewed tensions between Musk and Trump have added an extra layer of complexity to an already unpredictable market. Investors are advised to stay informed and cautious, as the outcome of this feud could have far-reaching consequences for Bitcoin and other cryptocurrencies. The situation remains fluid, and it is essential to keep a close eye on developments as they unfold.