Why the Trump-Musk War Could Be a Catalyst for the rise in Bitcoin Price

Political disagreements between President Donald Trump and Elon Musk may have set the stage for the next breakout of Bitcoin. Although both have previously shared a common stance against the establishment, their recent rift over spending, cryptocurrency, and narrative control is reshaping the market, and Bitcoin could benefit. Bitcoin Develops Strongly After Trump's Collapse – Musk As of the time of writing this article, Bitcoin is trading at $108,728, up 0.33% in the last 24 hours. This pioneering cryptocurrency continues to show strength, although it seems that the potential for a breakout is stagnating.

One of the catalysts is Elon Musk, who has initiated his own political movement, the American Party. This political vehicle focuses on cutting spending, reforming financial technology, and most notably, complete support for Bitcoin.

Musk's assertion that the U.S. Party will adopt Bitcoin as a reserve currency is a fundamental move beneficial to this pioneering cryptocurrency despite Trump's fierce reactions. The President of the United States considers any move related to this issue as a betrayal and threatens to halt contracts or agreements with Tesla and SpaceX in retaliation.

The way the new party integrates Bitcoin into its platform is unique. Musk has long been inconsistent about cryptocurrency, but this marks an official political commitment. The symbolic clash between Trump and Musk also fractures traditional Republican relationships, with some support shifting to Musk's movement. If this party gains even modest support in Congress, the Bitcoin support law could be expedited.

Investors are viewing the conflict between Trump and Musk not as a partisan dispute but as a geopolitical shock, and that is very significant. While Trump recently signed into law "A beautiful big bill" worth trillions of dollars, raising the debt ceiling and locking in tax cuts, Musk opposed this measure. The tech billionaire has called for financial restraint, but this disagreement has caused a deeper rift to explode.

However, the market has a different view as Bitcoin rises 4.8%, surpassing the $109,000 mark and marking the strongest weekly close to date. Analysts now see greater price potential for Bitcoin, a rally driven more by macro conditions and historical data rather than politics. This goal comes after Reuters reported on a research note from Bitwise on July 2 stating that the price of Bitcoin tends to experience a 30% breakout in the 50 days following a geopolitical shock in the market. Analysts André Dragosch and Ayush Tripathi from Bitwise have stated: "These favorable dynamics create a constructive backdrop for Bitcoin and cryptocurrency assets...". Meaning? Bitcoin could rise to $136,000 by mid-August if historical trends repeat. Bitcoin Will Benefit From The Depreciation Of The USD Meanwhile, the financial backdrop continues to strengthen the core of Bitcoin. Trump's bill is estimated to add an additional 7 trillion dollars to the national debt over the next decade. That spending has sparked fears of dollar devaluation, a theme that Bitcoin thrives on. Analysts David Brickell and Chris Mills wrote in their weekly newsletter Connecting The Dots that: "Currency devaluation games have just risen to a new level" Economist Erkan Öz provided additional context on YouTube, comparing Musk's capitalist personality with the decentralized nature of Bitcoin. "In Bitcoin... there is no 'boss' like Musk Satoshi Nakamoto... there is no authority like a CEO," he said. Öz argues that while Musk is trying to reshape the system, Bitcoin has operated outside of that system and may ultimately benefit more from this conflict than either of them. Traders seem to be holding their ground. Bitcoin is consolidating above the $107,000 level, with selling pressure gradually decreasing and institutions showing renewed interest. Yuma commented: "Strong investors participating at a price below $95,000 are not withdrawing, which shows stable interest." However, the risks remain. Regulatory opposition is a constant threat, especially if Musk's political ambitions provoke retaliation from federal agencies. However, currently, this discord has amplified the narrative around cryptocurrency and reinforced the role of Bitcoin in the changing political economy of the United States.