The political conflict between President Donald Trump and Elon Musk may have paved the way for Bitcoin's next breakthrough.
While they once sympathized with anti-establishment sentiments, recent conflicts over spending, cryptocurrency, and narrative control are reshaping the market, potentially benefiting Bitcoin (BTC).
Bitcoin Grows Amid Trump-Musk Aftermath
At the time of writing, Bitcoin is trading at $108,728, rising 0.33% in the past 24 hours. Despite appearing to have stagnant upward potential in recent days, Bitcoin is showing strong support.

One catalyst was Elon Musk launching his political movement, the America Party. This political initiative centers on spending cuts, fintech reform, and particularly strong support for Bitcoin.
Fiat is hopeless, so yes
— Elon Musk (@elonmusk) July 7, 2025
Musk's statement that the America Party will adopt Bitcoin as a reserve currency could be a good sign for BTC's future, despite the strained relationship between Musk and current President Donald Trump.
Trump recently considered Musk's move to establish the America Party a kind of betrayal and threatened to terminate Tesla and SpaceX contracts and deals.
🚨 BREAKING:
— BitBull (@AkaBull_) June 7, 2025
Trump says his relationship with Elon Musk is OVER.
Elon called Trump's immigration bill a "disgusting abomination."
⁰Trump fired back: "He's gone crazy" — even hinted at pulling Tesla/SpaceX deals.
What started as tech + politics bromance just turned into… pic.twitter.com/MgBoAYltiO
The new party's method of integrating Bitcoin into its platform is unique. While Musk has been inconsistent about cryptocurrency, this now represents an official political commitment.
The symbolic clash between Trump and Musk is dividing traditional Republican donor lines, with some shifting support to Musk's movement.
If the party gains minimal influence in Congress, pro-Bitcoin legislation could be accelerated.
◾ 4. If the party gains even minimal influence in Congress, it could accelerate pro-$BTC legislation
— Yuma (@DeFiYuma) July 8, 2025
◾ Investors already holding Bitcoin or entering at $105K will benefit
◾ With a positive outcome, the potential to move to $120-125K in the next 3-6 months
Investors are viewing the Trump-Musk conflict as a geopolitical shock rather than a partisan dispute, which is significant.
While Trump recently signed a trillion-dollar "One Big Beautiful Bill" into law, raising the debt ceiling and confirming tax cuts, Musk opposed this measure.
Musk emphasized the need for debt reduction, and their differing perspectives have caused deeper rifts.
Increasing the deficit from an already insane $2T under Biden to $2.5T.
— Elon Musk (@elonmusk) July 5, 2025
This will bankrupt the country.
Nevertheless, the market took a different view, with Bitcoin rising 4.8% to surpass $109,000 and record its best weekly close in history.
Analysts are now seeing further potential for Bitcoin's rise, driven more by macroeconomic conditions and historical data than politics.
Reuters recently cited a July 2nd Bitwise research report showing that markets tend to see Bitcoin prices surge 30% over 50 days following geopolitical shocks.
"These tailwinds provide a constructive backdrop for Bitcoin and crypto assets…," wrote Bitwise analysts Andre Dragosch and Ayush Tripathi.
What does this mean? If historical trends repeat, Bitcoin could rise to $136,000 by mid-August.
Bitcoin Benefits from Dollar Value Decline
Meanwhile, the financial backdrop continues to reinforce Bitcoin's core narrative. Trump's bill is estimated to add $7 trillion to national debt over the next decade. Such spending has reignited fears of dollar value decline, a theme where Bitcoin thrives.
"The currency devaluation game has gone to another level," wrote analysts David Brickell and Chris Mills in their weekly "Connecting The Dots" newsletter.
Economist Erkan Öz provided additional context on YouTube, contrasting Musk's capitalistic nature with Bitcoin's decentralized spirit.
"In Bitcoin… there's no 'boss' like Musk. Satoshi Nakamoto doesn't have CEO-like authority," he said.
Öz argues that while Musk tries to reconfigure the system, Bitcoin already operates outside it and could ultimately benefit more than either of them.
Traders seem to be holding their ground. Bitcoin is establishing a base above $107,000, with selling pressure decreasing and institutions showing renewed interest.
"Strong players who entered below $95,000 are not exiting, signaling stable interest," observed Yuma.
Risks remain. A potential backlash is the threat of regulatory retaliation if Musk's political ambitions provoke federal agency responses.
However, at present, this conflict has amplified the narrative of cryptocurrency and strengthened Bitcoin's role in the changing political economy of the United States.