Bitcoin's drop below the key $107K level is linked to the escalating conflict between billionaire Elon Musk and former President Donald Trump, drawing attention from traders and investors.
Elon Musk vs Donald Trump Conflict
Elon Musk continues to criticize Trump's "Big Beautiful Bill," stating that if the bill passes, he will establish or support creating a new political party in the U.S. On July 1, Musk conducted a poll on his platform X, where over 80% of participants supported the idea of a new party.
> "80% voted for a new party" — Elon Musk (@elonmusk) [July 1, 2025]
Market Reaction to the Conflict
In response to Musk's criticism, Trump posted on his Truth Social account that DOGE may consider cutting Elon Musk subsidies. Musk responded by urging to "CUT IT ALL. Now," emphasizing the need for the government to reduce spending. As a result of this turmoil, Tesla's stock has dipped over 10% in the past week.
Cryptocurrency Market and Price Drop
At the time of writing, Bitcoin was trading at $106,834, which is down 1.34%. The 24-hour low and high were $106,759 and $108,317 respectively. Traders should closely watch the $106,100 level, as breaking this level could trigger significant liquidations.
Amid the ongoing conflict between Elon Musk and Donald Trump, Bitcoin continues to face pressure, and traders should monitor the events in the market closely.
