Trump Vs. Musk Gets Ugly—Could Crypto Take A Hit In The Crossfire?

US President Donald Trump lashed out at Elon Musk on Truth Social late Sunday after Musk revealed plans for a new political group.

Musk had posted on X on July 5 that he wanted to launch the “America Party.” Trump fired back on July 6, calling the move a sign that Musk has gone “completely ‘off the rails,’ essentially becoming a “Train Wreck” over the past five weeks.”

America Party Faces Early Questions

According to Musk’s July 5 post, he wants a third option for voters fed up with the two main parties. Based on reports, he’s yet to file formal paperwork or outline how the America Party would win ballot access in key states.

By a factor of 2 to 1, you want a new political party and you shall have it!

When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy.

Today, the America Party is formed to give you back your freedom. https://t.co/9K8AD04QQN

— Elon Musk (@elonmusk) July 5, 2025

Trump pointed out that third parties have never broken through in modern US politics. He also took a shot at Democrats, saying they’ve “lost their confidence and their minds” over his recent crypto projects.

Musk Pushes Back On Big Spending Bill

In recent weeks, Musk criticized what he called the “Big Beautiful Bill,” a massive spending package in Congress. He wrote on X that it was a “disgusting abomination” packed with “pork.”

“Disgusting abomination.” That’s how @elonmusk described @realDonaldTrump’s flagship domestic policy bill in a scathing series of posts on X.

Musk criticised the bill for being “pork-filled” and warned it would massively inflate the U.S. budget deficit, calling out lawmakers… pic.twitter.com/TU69sJsLGQ

— Outlook Business (@outlookbusiness) June 4, 2025

Trump responded by reminding Musk that he plans to end the federal electric vehicle mandate, something Musk supposedly agreed to without complaint. That swipe hints at a deeper split over how much the government should steer clean‑energy policy.

Cryptocurrency prices barely budged after Trump’s post. Bitcoin remains above $108,000 and has held that level since early summer. Dogecoin – the memecoin that has been closely associated with Musk – trades near $0.16, bouncing off that mark several times in the last 24 hours.

TRUMP coin dipped to about $8.47 following Trump’s comments, then bounced right back as fans shrugged it off. Based on reports from crypto analysts, the feud could still add volatility if it drags regulators or big investors into the fray.

History shows that building a new party takes more than social‑media polls. You need grassroots organizers, hundreds of thousands of petition signatures and millions in funding.

Musk’s fanbase might help with online buzz, but turning clicks into real voters is a different challenge. Trump noted this gap and cast doubt on whether Musk has a plan beyond stirring the pot on X.

It’s still early days. If Musk files with the Federal Election Commission or names state directors, the story will shift from rumor to reality. And if Trump follows up with threats to pull back support for Tesla or SpaceX contracts, markets might start to pay closer attention.

For now, though, it’s mostly a public spat. Both men are used to moving markets, including crypto, with a single tweet or post, but so far neither side has shown the playbook that would really change the game.

Featured image from Nine, chart from TradingView