Bitcoin and the cryptocurrency market experienced significant volatility in the first week of July 2025, amid escalating political tensions between two prominent tech and political figures in the United States.
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Bitcoin slightly decreased by about 0.72%, trading at less than $107,000 amidst market volatility.
Elon Musk announced he would establish a new political party if the large spending bill in the United States is passed.
The public dispute between Elon Musk and former US President Donald Trump has sparked numerous reactions regarding policy and the cryptocurrency market.
How did the cryptocurrency market perform in the first week of July 2025?
According to the latest market data, Bitcoin slightly dropped 0.72%, down to around $106,743, reflecting uncertainty in investor sentiment. Other major currencies like Ethereum, Solana, and XRP also recorded mixed volatility during the same period.
In particular, the Q2 2025 market report from the International Blockchain Cooperation Organization indicates that political volatility directly impacts liquidity and price volatility on global exchanges.
What did Elon Musk say about the new spending bill in the United States and what impact does it have?
Elon Musk, CEO of Tesla and SpaceX, asserted that if the spending bill is passed, he will establish a new political party called The America Party. He believes this bill increases the largest public debt in the history of the United States and will have serious consequences for US politics.
I will do everything to ensure that those who support this bill lose in the upcoming primaries, even if it is the last thing I do in this life.
Elon Musk, CEO of Tesla & SpaceX, 1/7/2025, Twitter
With experience running some of the world's leading tech corporations, Elon Musk has strongly opposed the trend of unchecked spending, while warning about political risks in the current economic environment.
What was Donald Trump's response to Musk's statement?
Former US President Donald Trump immediately rebutted on his social platform, accusing Elon Musk of being significantly dependent on government subsidies and claiming that without this support, activities such as rocket launches and Tesla's electric car production would be stalled.
If all support is cut off, Musk will have to shut down operations and return to South Africa. The United States would save a huge sum of money.
Donald Trump, former US President, 2/7/2025, Truth Social
This reaction shows the intense confrontation between two influential figures not only in the tech field but also on the national political forum, raising many controversies about policy and the development of the cryptocurrency industry.
How does this controversy affect cryptocurrency investors?
The tense political situation has made investor sentiment more cautious, increasing price volatility in the cryptocurrency market. According to an analysis report from the International Crypto Research Institute, political events often create short-term price movements that affect traders' trading strategies and risk management.
Index Before Event Current Impact Bitcoin Price (USD) 107,500 106,743 Decrease 0.72% Ethereum (%) 0.85 increase Stagnant cash flow Complex volatility Liquidity Stable Slight decrease on major exchanges Investors are more cautious
Frequently asked questions about the political impact on cryptocurrency markets
Why does politics affect Bitcoin prices? Financial and legal policies can change capital flows and investor confidence, causing volatility in cryptocurrency prices. (Source: International Crypto Research Institute, 2025) Does Elon Musk have a significant influence on the cryptocurrency market? As the founder of many leading tech projects, Musk's statements often cause significant psychological volatility in the cryptocurrency community. How could the establishment of a new political party affect the market? The new party could promote or oppose policies related to cryptocurrencies, affecting the legal framework and future investments. Can Bitcoin recover quickly after political volatility? Bitcoin generally tends to stabilize and recover after short-term volatility, but it depends on the level of impact and specific events. How should investors respond to political volatility? Tight risk management, diversifying portfolios, and closely monitoring significant political developments help mitigate risks.
Source: https://tintucbitcoin.com/bitcoin-lao-doc-vi-tranh-cai-trump-musk/
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