Key Notes
- Elon Musk threatened to form a new “America Party” after slamming Trump and the GOP for endorsing massive spending.
- Bitcoin dropped 1.27%, while the market saw over $200 million in liquidations as political tension escalated.
- Analysis shows the crypto market holding above the key $3T breakout zone, with potential for a blow-off top near $5T.
The crypto market finds itself in the eye of a political disturbance once again, as two of its most influential figures and prominent crypto bulls — Donald Trump and Elon Musk — lock horns once again.
The renewed feud between the tech billionaire and the US President has already sent ripples through financial markets, including crypto, with CoinMarketCap showing a 1% decline in the total crypto market cap in the past day.
Debt Ceiling Drama: The Porky Pig Party?
The root of the conflict between the two billionaires lies in a controversial $5 trillion debt ceiling hike proposed by the Republican-controlled Congress and endorsed by President Trump.
What’s the point of a debt ceiling if we keep raising it?
— Elon Musk (@elonmusk) July 1, 2025
Meanwhile, Bitcoin
BTC
$106 624
24h volatility:
1.0%
Market cap:
$2.12 T
Vol. 24h:
$22.11 B
dipped 1.27% below $107,000, and the broader crypto market saw almost $200 million in liquidations, with long positions accounting for $118.47 million.
Elon Musk didn’t hold back. Slamming the bill as “insane and destructive,” he labeled the Republicans the “Porky Pig Party” and threatened to launch a new political movement: the America Party.
Musk accused GOP lawmakers of betrayal for campaigning on fiscal restraint and then backing the biggest debt expansion in US history.
“If this insane spending bill passes, the America Party will be formed the next day,” Musk declared on X, reigniting tensions with Trump after their brief reconciliation last month.
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
Trump Hits Back: DOGE vs. Elon
President Trump did not take the criticism lightly, hinting at revoking federal subsidies for Musk’s companies, including SpaceX and Tesla, via Truth Social.
“No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE,” said Trump.
He also called on the Department of Government Efficiency (D.O.G.E.) to audit Musk’s federal contracts. Trump alleged that without government support, Musk “would probably have to close up shop and head back home to South Africa.
Musk retorted, “CUT IT ALL. Now.” With both men doubling down, this escalating war of words has kept the digital asset market on edge.
Will $5 Trillion Break or Make the Market?
Despite the political chaos, technical indicators on the TOTAL crypto market cap chart suggest the bull cycle remains intact — at least for now. According to analyst shakatrade1_618, the structure is still constructive:
- The $3 trillion level has acted as a historic resistance zone since May 2021.
- A breakout and textbook retest above this level occurred between March and June 2024.
- The crypto market is currently consolidating just above this retested zone.
The next major Fibonacci resistance levels are 1.618 extension ($3.74 trillion), 2.618 extension ($4.22 trillion), 3.618 extension ($4.71 trillion), and 4.236 extension ($5.01 trillion). These levels represent possible blow-off top targets if momentum continues.
TOTAL Crypto Market Cap Chart with Fib Levels | Source: TradingView
The Volume Profile and VWAP analysis confirm strong activity in the current zone (between +1σ and +2σ). There’s no sign yet of a reversal, but distribution behavior is beginning to emerge.
Interestingly, horizontal volume shows the Point of Control (POC) clustering just below the current level — a critical pivot that could flip sentiment quickly if lost.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.
