Elon Musk Vows to Launch New Political Party Amid Fury Over Trump’s $5 Trillion Debt Bomb

Elon Musk just declared political war—and Washington’s debt addiction is his first target.

The billionaire’s threat to form a new party comes as Trump’s $5 trillion spending bill ignites fury. Critics call it 'generational theft'—Musk seems ready to burn the system down.

Wall Street shrugs. They’ll just hedge with Bitcoin.

TLDR

• Elon Musk threatens to form “America Party” if Congress passes Trump’s $5 trillion debt ceiling increase bill
• Bitcoin drops 1.27% below $107,000 as crypto market liquidations hit $211 million over political tensions
• Musk calls the spending bill “debt slavery” and slams Republicans as the “Porky Pig Party”
• Trump retaliates on Truth Social, threatening to use DOGE to investigate Musk’s government subsidies
• Senate debates Trump’s “Big Beautiful Bill” which would add $3.3 trillion to deficit over next decade

The cryptocurrency market faces fresh volatility as Elon Musk escalates his political confrontation with Donald Trump over a massive government spending bill. Bitcoin has fallen 1.27% below $107,000 while total crypto liquidations reached $211 million in 24 hours.

Musk issued his strongest political threat since the 2024 election, warning he would create the “America Party” if Congress passes Trump’s proposed spending legislation. The Tesla CEO called the bill “insane” and accused lawmakers of supporting “debt slavery.”

If this insane spending bill passes, the America Party will be formed the next day.

Our country needs an alternative to the Democrat-Republican uniparty so that the people actually have a VOICE.

— Elon Musk (@elonmusk) June 30, 2025

The dispute centers on Trump’s “Big Beautiful Bill” that WOULD extend his first-term tax cuts and raise the debt ceiling by $5 trillion. This represents the largest debt ceiling increase in U.S. history according to Musk’s claims.

Bitcoin miners and long-term holders have increased selling pressure as political uncertainty grows. On-chain data shows Bitcoin demand turning negative, which analysts view as a weakness signal for the cryptocurrency.

Ethereum struggles to maintain support above $2,500 as ICO whales continue selling. The broader altcoin market mirrors Bitcoin’s decline with similar percentage drops across major cryptocurrencies.

Political Tensions Escalate

Musk directed harsh criticism at Republican Congress members who campaigned on reducing government spending. He promised to ensure these politicians “lose their primary next year” and said they “should hang their head in shame.”

The billionaire entrepreneur labeled the current political system as the “Porky Pig Party” and claimed America needs an alternative to the “Democrat-Republican uniparty.” His proposed America Party would give people “an actual voice” in government.

Trump responded aggressively on Truth Social, threatening to use the Department of Government Efficiency against Musk. The president claimed Musk receives more government subsidies than “any human being in history” and suggested investigating these payments.

BREAKING: TRUMP posts about Elon Musk and electric vehicle subsidies pic.twitter.com/NJzmQOZcxl

— The Spectator Index (@spectatorindex) July 1, 2025

Trump defended his anti-EV mandate position, stating Musk knew his stance before endorsing him for president. The president called electric vehicle mandates “ridiculous” while saying EVs are “fine” but shouldn’t be mandatory.

Financial Impact Spreads

The Congressional Budget Office estimates the Senate version of Trump’s bill would add $3.3 trillion to the federal deficit over ten years. This exceeds the House version which would add $2.4 trillion to the deficit.

Crypto market participants remain cautious as the political drama unfolds. Investors are monitoring the situation while awaiting potential passage of the GENIUS stablecoin Act.

Musk spent over $275 million supporting Trump and Republican candidates in 2024 through his America PAC. The political action committee last donated in March to support two Florida Republican candidates in special elections.

The Tesla CEO has maintained his support for border security and deportation policies aligned with the Trump administration. However, the domestic spending bill has created a clear division between the two former allies.

Trump’s administration argues the bill would “slash deficits” while “unleashing economic growth.” They exclude the cost of extending 2017 Trump tax cuts from their deficit impact calculations.

The Senate continues debating the legislation as both Musk and Trump maintain their opposing positions through social media platforms.