Trump vs. Musk Feud Escalates—Will Crypto Become Collateral Damage?

Two titans clash—and digital assets might get caught in the crosshairs. As Trump and Musk trade blows, the crypto market braces for turbulence. Here's why.

When egos collide, markets tremble. The latest war of words between former President Trump and tech billionaire Elon Musk has traders asking: Will crypto pay the price?

Volatility loves drama. Bitcoin's price action historically mirrors headline chaos—and this showdown serves up perfect storm conditions. Meanwhile, altcoins could swing wildly as retail investors panic-react to Twitter spats.

Institutional players might see opportunity. While Main Street gets distracted by celebrity feuds, Wall Street quietly accumulates—because nothing beats buying fear at a discount.

One thing's certain: When elephants fight, the grass suffers. And in today's financial jungle, crypto traders are the grass. (Though let's be honest—the only real winners here are the hedge funds shorting both sides.)

America Party Faces Early Questions

According to Musk’s July 5 post, he wants a third option for voters fed up with the two main parties. Based on reports, he’s yet to file formal paperwork or outline how the America Party WOULD win ballot access in key states.

By a factor of 2 to 1, you want a new political party and you shall have it!

When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy.

Today, the America Party is formed to give you back your freedom. https://t.co/9K8AD04QQN

— Elon Musk (@elonmusk) July 5, 2025

Trump pointed out that third parties have never broken through in modern US politics. He also took a shot at Democrats, saying they’ve “lost their confidence and their minds” over his recent crypto projects.

Musk Pushes Back On Big Spending Bill

In recent weeks, Musk criticized what he called the “Big Beautiful Bill,” a massive spending package in Congress. He wrote on X that it was a “disgusting abomination” packed with “pork.”

“Disgusting abomination.” That’s how @elonmusk described @realDonaldTrump’s flagship domestic policy bill in a scathing series of posts on X.

Musk criticised the bill for being “pork-filled” and warned it would massively inflate the U.S. budget deficit, calling out lawmakers… pic.twitter.com/TU69sJsLGQ

— Outlook Business (@outlookbusiness) June 4, 2025

Trump responded by reminding Musk that he plans to end the federal electric vehicle mandate, something Musk supposedly agreed to without complaint. That swipe hints at a deeper split over how much the government should steer clean‑energy policy.

Cryptocurrency prices barely budged after Trump’s post. Bitcoin remains above $108,000 and has held that level since early summer. Dogecoin – the memecoin that has been closely associated with Musk – trades near $0.16, bouncing off that mark several times in the last 24 hours.

TRUMP coin dipped to about $8.47 following Trump’s comments, then bounced right back as fans shrugged it off. Based on reports from crypto analysts, the feud could still add volatility if it drags regulators or big investors into the fray.

History shows that building a new party takes more than social‑media polls. You need grassroots organizers, hundreds of thousands of petition signatures and millions in funding.

Musk’s fanbase might help with online buzz, but turning clicks into real voters is a different challenge. Trump noted this gap and cast doubt on whether Musk has a plan beyond stirring the pot on X.

It’s still early days. If Musk files with the Federal Election Commission or names state directors, the story will shift from rumor to reality. And if Trump follows up with threats to pull back support for Tesla or SpaceX contracts, markets might start to pay closer attention.

For now, though, it’s mostly a public spat. Both men are used to moving markets, including crypto, with a single tweet or post, but so far neither side has shown the playbook that would really change the game.

Featured image from Nine, chart from TradingView