#Musk Announces Political Party#  Why the Trump-Musk Dispute Is Positive for Bitcoin

The political clash between President Donald Trump and Elon Musk may have paved the way for Bitcoin's next surge.

Once united by anti-establishment sentiment, the two are reshaping the markets with their recent disagreement over spending, cryptocurrency, and narrative control, and Bitcoin BTCUSD could benefit.

Bitcoin Rises on Trump-Musk Dispute

Bitcoin is trading at $108,728 and is up 0.33% in the last 24 hours. The leading cryptocurrency continues to hold its ground, even as upside potential appears to have stalled.

One of the catalysts for these developments was Elon Musk's launch of his own political movement: the America Party. This political vehicle focuses on spending cuts, fintech reform, and, most importantly, full support for Bitcoin.

Musk's claim that the America Party will adopt Bitcoin as a reserve currency, despite Trump's reaction, lays a positive foundation for the pioneering cryptocurrency.

The US President has called any such move a betrayal and threatened to halt contracts or agreements with Tesla and SpaceX.

The new party's integration of Bitcoin into its platform is unique. Musk has long been inconsistent on cryptocurrency, but this move signals a formal political commitment.

The symbolic clash between Trump and Musk is also breaking traditional Republican donor lines, with some shifting their support to Musk's movement.

If the party gains even modest momentum in Congress, pro-Bitcoin legislation could accelerate.

Investors are viewing the Trump-Musk clash as more of a geopolitical shock, and that's significant.

Trump recently signed the multitrillion-dollar "One Big Beautiful Bill," raising the debt ceiling and securing tax cuts, but Musk opposed the measure.

The tech billionaire called for fiscal discipline, but the disagreement only deepened the rift.

However, markets took a different view, and Bitcoin surged 4.8% to surpass $109,000, its strongest weekly close ever.

Analysts see further upside potential for Bitcoin, driven primarily by macroclimate and historical data, not politics.

This target comes after a July 2 research note noted that Bitcoin's price tends to rise 30% within 50 days of geopolitical shocks.

These positive developments are creating a constructive backdrop for Bitcoin and crypto assets.

The result? If historical trends repeat, Bitcoin could rally toward $136,000 by mid-August.

Bitcoin Will Benefit from Dollar Depreciation

Meanwhile, the financial backdrop continues to bolster Bitcoin's core narrative. Trump's legislation adds approximately $7 trillion to the national debt over the next decade. This spending has reignited fears of dollar depreciation, a theme that fuels Bitcoin.

"Currency depreciation games have escalated," analysts wrote.

Traders appear to be holding their ground. Bitcoin is consolidating above $107,000, selling pressure is easing, and institutions are showing renewed interest.

"There are no strong players entering below $95,000, indicating consistent interest."

Still, risks remain. Regulatory hurdles loom large, especially if Musk's political ambitions draw retaliation from federal agencies.

For now, however, this controversy has strengthened the cryptocurrency's narrative and cemented Bitcoin's role in America's changing political economy.