Musk-Trump clash again over passage of ‘big, beautiful bill’… Why did cryptocurrencies fall?

The cryptocurrency market dropped by 3.1% in the past 24 hours due to a new public dispute between Tesla CEO Elon Musk and US President Donald Trump.

This conflict arose from Musk's criticism of Trump's proposed "big and beautiful bill", which provoked a strong reaction from the president and once again shook the financial markets.

Elon Musk and Donald Trump Clash Again

The conflict between Musk and Trump reignited after the former posted a series of tweets criticizing the bill, calling it a "debt slave bill" and blaming his supporters.

"Every congressman who campaigned on reducing government spending and then immediately voted for the largest debt increase in history should be ashamed!" he said.

Musk emphasized that he would take all necessary measures to ensure these politicians lose in next year's primaries, expressing his resolve to hold them accountable. He also stressed that this bill could have a fatal impact on debt.

"It's clear that with the crazy spending of this bill, the debt ceiling will increase by a record $5 trillion. We're living in a single-party state, a pig party!! We need a new party that truly thinks about people," he posted.

This billionaire, who strongly supported Trump in the presidential election, also called for the creation of a new party.

"If this crazy spending bill passes, the America Party will be formed the next day. Our country needs an alternative to the single Democratic-Republican party, and people should actually have a voice," he added.

This series of attacks provoked a response from President Trump. He criticized Elon Musk for benefiting from excessive government subsidies and claimed that Musk's businesses would struggle to survive without them.

"Elon can receive more subsidies than any human in history, and without subsidies, he would probably fold up and go back to South Africa. No more rocket launches, satellites, electric car production, and our country would save massive money. Maybe we should let DOGE look into this issue? We can save big money!!!" Trump wrote.

The cryptocurrency market felt the initial aftermath of this clash. Five of the top 10 coins recorded losses in the past 24 hours, with Doge (DOGE), which Musk favors, leading the decline. Bitcoin (BTC) and Ethereum (ETH) saw slight drops over the past day.

According to BeInCrypto's analysis, Bitcoin is under selling pressure, and if the current downward trend continues, there could be further declines. The impact so far is limited, but historical patterns suggest the possibility of deeper volatility.

In June 2025, the Musk-Trump dispute caused a 5.1% market drop and triggered nearly $1 billion in liquidations. Therefore, if the conflict escalates, the market will have to bear its impact.