Why the Trump–Musk Feud Could Be Bullish for Bitcoin

The political fallout between President Donald Trump and Elon Musk may have set the stage for Bitcoin’s next breakout.

While the two once aligned on anti-establishment sentiment, their recent split over spending, crypto, and narrative control is already reshaping markets, and Bitcoin (BTC) may be poised to benefit.

Bitcoin Thrives in the Trump–Musk Fallout

As of this writing, Bitcoin traded for $108,728, up by 0.33% in the last 24 hours. The pioneer crypto continues to show strength, despite what appears to be a stagnating upside potential.

Bitcoin (BTC) Price Performance. Source: BeInCrypto

One of the catalysts was Elon Musk, who launched his own political movement, the America Party. This political vehicle is centered around spending cuts, fintech reform, and, most notably, full-throated support for Bitcoin.

Musk’s assertion that the American Party would adopt Bitcoin as a reserve currency is a bullish fundamental for the pioneer crypto despite Trump’s backlash.

The US President labeled any move to this effect a betrayal and threatened to halt Tesla and SpaceX contracts or deals in retaliation.

The way the new party incorporates Bitcoin into its platform is unique. Musk has long been inconsistent on crypto, but this marks a formal political commitment.

The symbolic clash between Trump and Musk also fractures traditional Republican donor lines, with some shifting support to Musk’s movement.

If the party gains even modest traction in Congress, pro-Bitcoin legislation could accelerate.

Investors are treating the Trump-Musk feud less as a partisan squabble and more as a geopolitical shock, and that matters.

While Trump recently signed his multi-trillion-dollar “One Big Beautiful Bill” into law, raising the debt ceiling and locking in tax cuts, Musk opposed the measure.

The tech billionaire called for fiscal restraint, but the disagreement sparked the deeper rift.

Notwithstanding, markets took a different view, with Bitcoin jumping 4.8%, breaking through $109,000 and marking its strongest weekly close ever.

Analysts now see more upside potential for Bitcoin, a rally driven more by the macro climate and historical data than politics.

This target comes after Reuters reported a July 2 research note from Bitwise indicating that Bitcoin’s price tends to spike by 30% in the 50 days after the market suffers geopolitical shocks.

“These tailwinds set a constructive backdrop for Bitcoin and crypto assets…,” Bitwise analysts André Dragosch and Ayush Tripathi wrote.

The implication? Bitcoin could rally toward $136,000 by mid-August if historical trends repeat.

Bitcoin To Benefit from Dollar Debasement

Meanwhile, the fiscal backdrop continues to reinforce Bitcoin’s core narrative. Trump’s bill adds an estimated $7 trillion to the national debt over the next decade. That spending has reignited fears of dollar debasement, a theme Bitcoin thrives on.

“The currency debasement games just stepped up another level,” analysts David Brickell and Chris Mills wrote in their weekly Connecting The Dots newsletter.

Economist Erkan Öz added further context on YouTube, contrasting Musk’s capitalist persona with Bitcoin’s decentralized ethos.

“In Bitcoin… there’s no ‘boss’ like Musk. Satoshi Nakamoto… holds no CEO-like authority,” he said.

Öz argues that while Musk is trying to reshape the system, Bitcoin already operates outside it, and may ultimately benefit more from the feud than either man.

Traders appear to be holding their ground. Bitcoin is consolidating above $107,000, with selling pressure tapering and institutions showing renewed interest.

“Strong players who entered below $95,000 are not exiting, which signals stable interest,” Yuma observed.

Still, risks remain. Regulatory pushback is a looming threat, especially if Musk’s political ambitions provoke retaliation from federal agencies.

For now, however, the feud has amplified crypto’s narrative and bolstered Bitcoin’s role in America’s shifting political economy.