Trump vs. Musk: How Their Clash Could Supercharge Bitcoin’s Rally

The feud between Donald Trump and Elon Musk isn't just tabloid fodder—it might be rocket fuel for Bitcoin. Here's why.

When Titans Collide: Political and Tech Giants Spark Crypto Chaos

Trump's protectionist rhetoric clashes with Musk's techno-libertarian vision, creating a perfect storm of uncertainty. And where traditional markets fear instability, Bitcoin thrives. The OG cryptocurrency has historically surged during institutional infighting—just ask the 2021 Wall Street bailout crowd.

Mainstream Money on the Sidelines? Bitcoin Wins

As legacy investors scramble to price in the feud's impact on Tesla stock and MAGA ETFs, crypto markets operate in their usual 24/7 defiance of political theater. No trading halts, no circuit breakers—just pure, uncensored price discovery. (Meanwhile, your pension fund manager is still trying to figure out what a 'blockchain' is.)

The Ultimate Hedge Against Ego-Driven Markets

When billionaires battle, their pet assets—Tesla shares, Truth Social stock—become volatility traps. Bitcoin? It just keeps mining through the drama, completely indifferent to which rich guy's rocket gets more Twitter likes. In an era where markets move on tweetstorms and courtroom outbursts, that's not just refreshing—it's financially revolutionary.

So while CNBC anchors hyperventilate about 'market stability,' smart money's already positioning for the real play: decentralized assets that don't care who's president—or who owns the platform they argue on.

Bitcoin Thrives in the Trump–Musk Fallout

As of this writing, bitcoin traded for $108,728, up by 0.33% in the last 24 hours. The pioneer crypto continues to show strength, despite what appears to be a stagnating upside potential.

One of the catalysts was Elon Musk, who launched his own political movement, the America Party. This political vehicle is centered around spending cuts, fintech reform, and, most notably, full-throated support for Bitcoin.

Fiat is hopeless, so yes

Musk’s assertion that the American Party would adopt Bitcoin as a reserve currency is a bullish fundamental for the pioneer crypto despite Trump’s backlash.

The US President labeled any move to this effect a betrayal and threatened to halt Tesla and SpaceX contracts or deals in retaliation.

BREAKING:

Trump says his relationship with Elon Musk is OVER.

Elon called Trump’s immigration bill a “disgusting abomination.”
⁰Trump fired back: “He’s gone crazy” — even hinted at pulling Tesla/SpaceX deals.

What started as tech + politics bromance just turned into… pic.twitter.com/MgBoAYltiO

The way the new party incorporates Bitcoin into its platform is unique. Musk has long been inconsistent on crypto, but this marks a formal political commitment.

The symbolic clash between TRUMP and Musk also fractures traditional Republican donor lines, with some shifting support to Musk’s movement.

If the party gains even modest traction in Congress, pro-Bitcoin legislation could accelerate.

4. If the party gains even minimal influence in Congress, it could accelerate pro-$BTC legislation

Investors already holding Bitcoin or entering at $105K will benefit

With a positive outcome, the potential to MOVE to $120-125K in the next 3-6 months

Investors are treating the Trump-Musk feud less as a partisan squabble and more as a geopolitical shock, and that matters.

While Trump recently signed his multi-trillion-dollar “One Big Beautiful Bill” into law, raising the debt ceiling and locking in tax cuts, Musk opposed the measure.

The tech billionaire called for fiscal restraint, but the disagreement sparked the deeper rift.

Increasing the deficit from an already insane $2T under Biden to $2.5T.

This will bankrupt the country.

Notwithstanding, markets took a different view, with Bitcoin jumping 4.8%, breaking through $109,000 and marking its strongest weekly close ever.

Analysts now see more upside potential for Bitcoin, a rally driven more by the macro climate and historical data than politics.

This target comes after Reuters reported a July 2 research note from Bitwise indicating that Bitcoin’s price tends to spike by 30% in the 50 days after the market suffers geopolitical shocks.

“These tailwinds set a constructive backdrop for Bitcoin and crypto assets…,” Bitwise analysts André Dragosch and Ayush Tripathi wrote.

The implication? Bitcoin could rally toward $136,000 by mid-August if historical trends repeat.

Bitcoin To Benefit from Dollar Debasement

Meanwhile, the fiscal backdrop continues to reinforce Bitcoin’s Core narrative. Trump’s bill adds an estimated $7 trillion to the national debt over the next decade. That spending has reignited fears of dollar debasement, a theme Bitcoin thrives on.

“The currency debasement games just stepped up another level,” analysts David Brickell and Chris Mills wrote in their weekly Connecting The Dots newsletter.

Economist Erkan Öz added further context on YouTube, contrasting Musk’s capitalist persona with Bitcoin’s decentralized ethos.

“In Bitcoin… there’s no ‘boss’ like Musk. Satoshi Nakamoto… holds no CEO-like authority,” he said.

Öz argues that while Musk is trying to reshape the system, Bitcoin already operates outside it, and may ultimately benefit more from the feud than either man.

Traders appear to be holding their ground. Bitcoin is consolidating above $107,000, with selling pressure tapering and institutions showing renewed interest.

“Strong players who entered below $95,000 are not exiting, which signals stable interest,” Yuma observed.

Still, risks remain. Regulatory pushback is a looming threat, especially if Musk’s political ambitions provoke retaliation from federal agencies.

For now, however, the feud has amplified crypto’s narrative and bolstered Bitcoin’s role in America’s shifting political economy.