Crypto market remains shaky as Elon Musk threatens to form a new political party if the Republicans increase spending and raise the US Debt ceiling further. Musk has slammed Donald Trump’s Republican party for proposing a $5 trillion debt ceiling hike, the largest in the history of the US. Bitcoin (BTC) price is down 1.22% while altcoins are facing a drop of a similar magnitude today.
Crypto Market On Edge As US Debt Ceiling Raise Likely
Although Elon Musk and Donald recouped after exchanging heavy jabs on the X platform, last month, Musk is once again calling out the Republican spending bill that raises the debt ceiling by a massive $5 trillion. Furthermore, U.S. President Donald Trump has called for Fed rate cuts to 1%, in a major push for economic activity. However, Musk believes that passing this massive spending bill will only increase US Debt ceiling, making things worse for Americans, and pushing inflation higher.
Amid yesterday’s development, the crypto market activity has remained shaky with Bitcoin price down by 1.27%, slipping under $107,000, as of press time. On-chain data also shows that Bitcoin has been facing selling pressure from miners and long-term holders. With BTC’s apparent demand turning negative, analysts call it a sign of weakness.
Altcoins are facing a similar selling pressure, as Ethereum(ETH) struggles to hold above $2,500. The sell-off by Ethereum ICO whales has further dampened the sentiment around the altcoin. Amid the current action, the 24-hour crypto market liquidations have soared to $211 million, with $133.75 million in long liquidations.
Elon Musk Warns Trump About “One Big, Beautiful Bill”
U.S. President Trump has proposed a comprehensive “One Big Beautiful Bill” aimed at extending his expiring first-term tax cuts, estimated to cost $4.5 trillion. Referring to it as the DEBT SLAVERY Bill, Musk wrote:
“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”.
While referring to Republicans, Musk said that all those Congress members who campaigned on reducing the bill, and then immediately flipped 180% to announce the biggest debt increase, “should hang their head in shame.” Musk further warned that he would make surge that these members lose their primary next year in 2026.
Musk vs Trump 2.0 Begins
Elon Musk stated that if Congress passes this massive spending bill proposed by Republicans, he would immediately launch the “America Party”, the next day, launching a political rivalry with his once crucial 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.
Crypto market investors are waiting on the sidelines at the moment, looking for things to unfold. Investors have a greater focus on the passing of the GENIUS stablecoin Act in the House, for Trump to sign it into law.
Bhushan Akolkar
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets.
He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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