The crypto market remains volatile after Elon Musk criticized Donald Trump and the Republican Party for proposing a $5 trillion debt ceiling increase—the largest in U.S. history. Musk warned that the move could worsen inflation and harm Americans, even threatening to form a new political party in response.
Bitcoin (BTC) has dipped 1.22%, struggling to hold above $107,000, while altcoins like Ethereum (ETH) face similar declines. Analysts point to increased selling pressure from miners and long-term holders, signaling weak demand.
Trump’s Spending Bill Faces Backlash
Despite past tensions, Musk has renewed his criticism of Trump’s proposed “One Big, Beautiful Bill,” which includes extending tax cuts at an estimated $4.5 trillion cost. Musk labeled it the “DEBT SLAVERY Bill,” accusing both parties of reckless spending.
“We live in a one-party country—the PORKY PIG PARTY!” Musk tweeted. “Time for a new political party that actually cares about the people.” He also warned that lawmakers supporting the bill should “hang their heads in shame” and vowed to challenge them in future elections.
Musk Threatens New Political Party
If the bill passes, Musk plans to launch the “America Party” to counter what he calls the Democrat-Republican “uniparty.” His stance has added uncertainty to an already shaky crypto market, where liquidations have surged to $211 million in 24 hours.
Meanwhile, crypto investors are closely watching Washington, particularly the progress of the GENIUS Stablecoin Act, which could bring regulatory clarity to the market.
