Crypto market stays shaky as Elon Musk warns Trump against backing the $5T spending bill, which could push the U.S. debt ceiling even higher.
The crypto market remains unstable as Elon Musk has threatened to establish a new political party if the Republicans increase expenditure and raise the US debt ceiling further.
Musk has criticized Donald Trump’s Republican Party for its proposal to raise the debt ceiling by $5 trillion, the largest in the United States’ history.
There is a 1.22% decline in the price of Bitcoin (BTC) today, and altcoins are also experiencing a similar decline.
Cypto Market Is Tense Because US Is Likely To Raise Its Debt Ceiling
Musk is once again criticizing the Republican spending measure that raises the debt ceiling by a substantial $5 trillion, even though Musk and Donald recouped after exchanging heavy jabs on the X platform last month.
Additionally, President Donald Trump of the United States has advocated for a reduction in the Federal Reserve’s interest rate to 1% to stimulate economic growth.
Nevertheless, Musk thinks that the passage of this substantial spending measure will exacerbate the situation for Americans and drive inflation higher, as it will only serve to raise the US debt ceiling.
The crypto market activity has remained unstable in the wake of yesterday’s development, with the Bitcoin price declining by 1.27% and falling below $107,000 as of press time.
Additionally, on-chain data indicates that miners and long-term holders have exerted selling pressure on Bitcoin.
Analysts believe that the evident decline in demand for BTC is indicative of a lack of strength.
Similar selling pressure is currently affecting altcoins, as Ethereum (ETH) is unable to maintain a price above $2,500.
The sell-off by Ethereum ICO billionaires has further diminished the sentiment surrounding the altcoin.
The 24-hour crypto market liquidations have increased to $211 million during the current action, with $133.75 million in long liquidations.
Elon Musk Issues Warning To President Trump Regarding “One Big, Beautiful Bill”
US President Trump has proposed a comprehensive “One Big Beautiful Bill” that is expected to cost $4.5 trillion and is designed to extend his expiring first-term tax cuts.
Musk referred to it as the DEBT SLAVERY Bill in his writing:
“It is obvious with the insane spending of this bill, which increases the debt ceiling by a record FIVE TRILLION DOLLARS that we live in a one-party country – the PORKY PIG PARTY!! Time for a new political party that actually cares about the people”.
Musk stated that all Congress members who campaigned on reducing the bill and then promptly flipped 180% to announce the most significant debt increase should “hang their heads in shame” when referring to Republicans.
Musk also issued a warning that he would implement a surge if these members lose their primary in 2026.
Commencement Of Musk Vs Trump 2.0
Elon Musk declared that he would promptly establish the “America Party” the following day if Congress approves the substantial spending bill proposed by Republicans.
This move would initiate a political rivalry with his former close friend, Donald Trump.
“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,” wrote Musk.
Investors in the crypto market are currently resting on the periphery, anticipating the outcome.
The passage of the GENIUS stablecoin Act in the House has garnered the attention of crypto market investors, who are expecting that Trump will sign it into law.
Trump Threatens To Have DOGE Audit Musk’s Businesses
In a related development, Trump promised to initiate an audit of Musk’s companies by the Department of Energy (DOE), citing apprehensions regarding government subsidies.
Trump shared a post on Truth Social that read,
Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa. No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE. Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!
This development significantly exacerbates the Trump-Musk enmity.
Trump accuses Musk of receiving government subsidies during his previous employment at the Department of Government Efficiency.
This action is a significant component of a more extensive fissure between the two parties, who have engaged in disagreements regarding topics such as trade policies, electric vehicle subsidies, and Trump’s budget proposal.
