Crypto Market Reacts to Musk-Trump Conflict: Has the Worst Yet to Come?

The crypto market has fallen by 3.1% in the last 24 hours due to the renewed public debate between Tesla CEO Elon Musk and US President Donald Trump.
This tension stems from Musk's recent criticisms of Trump's proposed "big, beautiful bill" and has reignited tensions that previously shook financial markets by receiving a harsh response from the President.
Elon Musk and Donald Trump Face Off Again
The conflict between Musk and Trump reignited as Musk tweeted a series of criticisms against the legislation. Musk referred to this bill as the "debt slavery bill" and condemned its supporters.
"Every member of Congress who campaigned on the promise to reduce government spending and then immediately voted for the largest debt increase in history should hang their head in shame!" he said.
Musk expressed his commitment to taking all necessary steps to ensure that these politicians are defeated in next year's primaries and emphasized his determination to hold them accountable for their actions. He also noted that the bill could have harmful debt effects.
"With the crazy spending of this proposal, raising the debt ceiling by a record FIVE TRILLION DOLLARS, it is clear that we live in a one-party country – PIG PARTY!! It's time for a new political party that truly cares about the people," he wrote.
The billionaire who strongly supported Trump in the presidential elections even called for the establishment of a new political party.
"If this crazy spending bill passes, the America Party will be established the next day. Our country needs an alternative to the Democratic-Republican single-party system to truly have a VOICE for the people," he added.
This series of attacks prompted President Trump to respond. Trump accused Elon Musk of benefiting from excessive government subsidies and suggested that Musk's businesses would struggle to survive without these subsidies.
‘Elon can receive far more subsidies than any person in history, and without subsidies, Elon would likely have to close shop and return to South Africa. There are no more Rocket launches, Satellites, or Electric Vehicle Production, and Our country saves a FORTUNE. Maybe DOGE needs to take a good, hard look at this? HUGE SAVINGS CAN BE MADE!!!’ Trump wrote.
The crypto market felt the first tremors of this conflict. 5 of the top 10 coins recorded losses in the last 24 hours, with Musk's favorite Dogecoin DOGE/USD leading the decline. Bitcoin BTCUSD and Ethereum ETH/USD recorded modest losses over the past day.