Crypto Falls as Musk Slams $5 Trillion GOP Debt Hike, Threatens New Party

Market wobbles after Elon Musk threatens to start new party over $5 trillion debt ceiling hike. Musk calls it the “DEBT SLAVERY Bill...

Written by: Arslan Butt • Tuesday, July 1, 2025 • 1 min read

• Last updated: Tuesday, July 1, 2025

Quick overview

Elon Musk threatens to start a new political party over a proposed $5 trillion debt ceiling hike, labeling it the 'DEBT SLAVERY Bill.'
Bitcoin and Ethereum experience a sell-off, with Bitcoin down 1.27% and Ethereum struggling to maintain its value above $2,500.
Political tensions rise as Musk and Trump clash over fiscal policies, with Musk vowing to campaign against lawmakers supporting Trump's debt ceiling proposal.
The total crypto market faced $211 million in liquidations, reflecting growing investor uncertainty amid macroeconomic instability.

Market wobbles after Elon Musk threatens to start new party over $5 trillion debt ceiling hike. Musk calls it the “DEBT SLAVERY Bill” and says Republicans are betraying fiscal conservatism. He labels them the “Porky Pig Party” and warns if this bill passes he’ll start the “America Party”

Trump is pushing for big economic moves including cutting the Fed’s interest rate to 1%. Musk says that will make inflation worse and the fiscal crisis deeper

Bitcoin, Ethereum get hit by broad market sell off

Bitcoin (BTC) down 1.27% to ~$107,000. Broader fear of inflation and monetary instability. On-chain metrics show miners and long term holders selling, demand is red (bearish)

Ethereum (ETH) struggling to hold above $2,500. Investor sentiment weakens after reports of Ethereum ICO whales liquidating. Total crypto market saw $211 million in liquidations 24h, $133.75 million of those were longs.

Key figures:

Bitcoin: Down 1.27% to ~$106,900
Ethereum: Below $2,500
Total Liquidations: $211 million
Long Liquidations: $133.75 million

Altcoins following the trend, most major tokens in the red with rising volatility and macro uncertainty.

Political tensions rattle market confidence

Elon Musk and Donald Trump who previously made up after public feuds are headed for another round. Trump’s proposal “One Big Beautiful Bill” would extend his first term tax cuts and increase the debt ceiling for $4.5 trillion.Musk is playing the fiscal conservative card, saying he’ll campaign against lawmakers who support the bill and make sure they lose in 2026 primaries.

Meanwhile, we wait for the GENIUS Stablecoin Act to see what kind of clarity it brings to the crypto space. But for now, political risks are casting a shadow over the economy.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.