Sentiment: Bearish / Uncertain
Some seasoned traders believe that this clash between Trump and Elon could trigger a prolonged bearish market.
This situation has been causing fear and uncertainty among investors ever since Musk raised concerns about the $1.7 trillion mandatory budget savings bill that Trump calls the "Big Beautiful Bill." We will be discussing this tonight on X Space at 9 PM. One thing that caught my attention is that even the U.S. Congress might vote on something they don’t fully understand.
Musk referred to the bill as a "disgusting abomination." He believes it could increase America's debt by over $2.6 trillion, eliminate Medicare subsidies — which would harm low-income healthcare — strip judges of the power to hold presidents accountable if they disobey court orders, empower the rich while worsening the condition of the poor through tax cuts, and potentially push America into a recession.
Trump, on the other hand, has issued several responses — the most impactful being his threat to cut subsidies for SpaceX and Tesla. This led to a loss of over $150 billion in Tesla’s market cap and shook other markets. Even Bitcoin dropped by 3%, causing sharp losses across the board.
There’s deep uncertainty in this market. Those saying it’s just a game are not paying close enough attention. There will be no real clarity until the final form
