The Trump–Musk Conflict Could Become a Catalyst for Bitcoin Growth

It is a favorable environment for Bitcoin. What started as a disagreement over government spending has turned into an open confrontation, and the cryptocurrency is already feeling the positive effects.

Source: Reuters

As Elon Musk challenges the system, the billionaire has launched his own political movement, the Party for America, which focuses on spending cuts, fintech reform, and—most importantly—full support for Bitcoin. Musk’s announcement that the new party would use Bitcoin as a reserve currency was a powerful catalyst for the first cryptocurrency.

It didn’t take long for Trump to react. The president called Musk’s actions a betrayal and threatened to halt all contracts with Tesla and SpaceX in retaliation. The markets, however, responded positively.

This geopolitical shock is acting as a catalyst for growth. Investors see the Trump/Musk standoff not as a partisan squabble but as a geopolitical shock, and that matters. Reuters research shows an interesting pattern: the price of Bitcoin typically jumps 30% within 50 days of geopolitical upheaval.

Analysts André Dragosch and Ayush Tripathi noted, “These tailwinds provide a constructive backdrop for Bitcoin and cryptocurrency assets.” If historical trends repeat, Bitcoin could rise to $136,000 by mid-August.

Source: X/DeFiYuma

The dollar dilemma plays into Bitcoin’s hands. Fiscal policy continues to strengthen Bitcoin’s core narrative. Trump’s “big beautiful bill” adds about $7 trillion to the national debt over the next decade. These expenditures have reignited fears of dollar devaluation—a theme on which Bitcoin thrives.

“The currency debasement games just stepped up another level…,” wrote analysts David Brickell and Chris Mills in their weekly newsletter, Connecting The Dots.

Economist Erkan Öz adds interesting context by contrasting Musk’s capitalist image with Bitcoin’s decentralized nature: “Bitcoin doesn’t have a ‘boss’ like Musk. Satoshi Nakamoto does not have the powers of a CEO.”

This raises the question: who stands to gain from this fight? Oz argues that while Musk is trying to change the system, Bitcoin is already functioning outside of it and could end up benefiting more from the standoff than either party to the conflict.

Traders are holding positions. Bitcoin is consolidating above $108,000. Selling pressure is easing, and institutional players are showing renewed interest. “Strong players who entered below $95,000 are not exiting, indicating sustained interest,” noted a Yuma analyst.

However, risks remain. Regulatory opposition could become a serious threat, especially if Musk’s political ambitions provoke retaliation from federal agencies.

To date, the conflict has reinforced the cryptocurrency narrative and solidified Bitcoin’s role in America’s evolving political economy. Paradoxically, the confrontation between these two powerful figures could be the catalyst Bitcoin needs for its next breakthrough.