How Trump’s ‘Big Beautiful Bill’ and the Argument with Elon Musk Could Affect Bitcoin

Donald Trump's Big Beautiful Bill has been passed by the Senate with a narrow vote — after hours of bargaining that extended late into the night. This was a very close vote as Vice President JD Vance cast the deciding vote to pass the bill. All attention is currently focused on the House of Representatives, where Trump's bill may face strong opposition - making the president's ambition to bring the bill to the table before July 4 questionable. At this point, we should consider what the "Big Beautiful Bill" includes. First, the generous tax cuts introduced during Trump's first term will be extended, with critics arguing that they disproportionately benefit the highest earners in the United States. Tips will no longer be taxable, which could be a game changer for the service industry. In addition to taxes, there will be a strong new investment to fund mass deportations and significant cuts to Medicaid, with the debt ceiling raised to $5 trillion. That is when Elon Musk appeared. 'PIG PARTY!!' Do you remember that, right when Trump started his second term, Elon Musk took on an important new role as the head of the Department of Government Efficiency — also known as DOGE, a name reminiscent of Dogecoin. His mission is very simple: to cut federal spending as much as possible. At the beginning of June, he described the "Big Beautiful Bill" as "a disgusting monstrosity" because it would undermine many of his cost-cutting efforts. (There are many doubts about the actual effectiveness of his efforts.) Both began to hurl insults at each other on social media in an "inevitable" consequence, when Musk claimed the president's name was in Epstein's records, while Trump threatened to cut off the wealthy man's lucrative government contracts. Both sides then seemed to call for a ceasefire - with Musk admitting that some of his posts had gone too far - but as this controversial bill increasingly became a reality, the CEO of Tesla and owner of X once again began to criticize the White House. "Clearly, with the reckless spending of this bill, raising the debt ceiling to a record FIVE TRILLION DOLLARS, we are living in a one-party country – PIG PARTY!! It's time for a new political party that truly cares about the people." Musk has previously mentioned this idea — and the latest odds from Polymarket indicate a 46% chance of this happening by the end of 2025. But in a new development, he also threatened to name and shame supporters of the "Big Beautiful Bill" in the midterm elections, a complete turnaround from his commitment to stay away from politics. A few hours later, Trump responded with criticism aimed at this billionaire on his preferred platform, Truth Social, he wrote:

And in a significant escalation, the president even hinted that he is planning to "consider" expelling Musk — something that his former advisor Steve Bannon called for a few weeks ago. Although this may not happen, the continued public hostile actions have been enough to scare Tesla investors. The electric vehicle manufacturer's stock fell by 6.1% during Tuesday's trading session on Wall Street — with Bitcoin also modestly down by 1% and trading at around $106,000. Musk also warned that things could get worse when posting: "It's really exciting to escalate this. Really, really exciting. But I will hold back at this moment." What Does This Mean for Bitcoin in the Long Term? At certain points in recent years, the correlation between Tesla stock prices and BTC has been fairly positive — meaning that the largest cryptocurrency in the world could potentially be dragged down further if this war of words continues. However, Bitcoin can also be affected in other ways. First, if Musk fulfills his promise to establish a new political party, it could cast doubt on the Republican Party's control of Congress. This could make it difficult for Trump to push for more cryptocurrency-friendly policies. But in the long run, many Bitcoin supporters assert that the "Big Beautiful Bill" painfully highlights the reasons why this digital asset is necessary — providing a solution to the depreciating dollar and the U.S. economy increasingly sinking into debt. On X, influencers in the cryptocurrency field all agree that "the money printer is heating up" and "is about to explode," with BTC serving as an alternative to the fiat money system and as a way to preserve assets. The details of the "Big Beautiful Bill" are still being discussed by lawmakers, and many things may change in the coming weeks. But one thing we know: an amendment proposed by Senator Cynthia Lummis friendly to BTC aimed at addressing "unfair tax treatment" of digital assets has now been overlooked.