Trump and Musk Clash Over $5 Trillion Debt Ceiling, Crypto Market Reacts
Political tensions are impacting the crypto market as Donald Trump and Elon Musk clash over a proposed $5 trillion debt ceiling hike. The conflict has contributed to a 1% decline in the total crypto market cap, with Bitcoin falling 1.27% below $107,000 and nearly $200 million in liquidations occurring.
Key Points of Conflict
- Musk criticized the debt ceiling increase, calling it "insane and destructive" and threatened to form a new political movement, the America Party.
- Trump retaliated by suggesting federal subsidies for Musk’s companies could be revoked and accused him of needing government support to operate.
- The ongoing feud has heightened volatility in the digital asset market.
Market Analysis
Despite the turmoil, technical indicators suggest the bull cycle remains intact:
- The $3 trillion level has been a historical resistance zone since May 2021.
- The crypto market is consolidating above this retested zone following a breakout earlier this year.
- Next major Fibonacci resistance levels are at $3.74 trillion, $4.22 trillion, $4.71 trillion, and $5.01 trillion.
Current trading volume indicates strong activity, but signs of distribution behavior are emerging, which could affect market sentiment.
