NEW
Trump-Endorsed Congressional Spending Bill Faces Criticism from Elon Musk: Potential Impact on DOGE and Crypto Market | Flash News Detail | Blockchain.News
Latest Update
6/3/2025 7:23:53 PM

Trump-Endorsed Congressional Spending Bill Faces Criticism from Elon Musk: Potential Impact on DOGE and Crypto Market

Trump-Endorsed Congressional Spending Bill Faces Criticism from Elon Musk: Potential Impact on DOGE and Crypto Market

According to Fox News (@FoxNews), the White House reaffirmed support for the Trump-endorsed 'big, beautiful bill' despite outgoing DOGE chief Elon Musk's criticism, labeling it as 'massive, outrageous, pork-filled Congressional spending.' The bill, which passed the House last month and is now heading to the Senate, has raised concerns among traders regarding potential fiscal expansion and its possible inflationary impact on the crypto market, especially Dogecoin. As policy uncertainty increases, traders should closely monitor Senate developments for short-term volatility in DOGE and broader crypto assets (Source: Fox News, June 3, 2025).

Source

Analysis

The recent political discourse surrounding the White House's defense of a controversial spending bill, endorsed by former President Donald Trump and criticized by Elon Musk, has stirred significant attention in both traditional and crypto markets. On June 3, 2025, Fox News reported that the White House stood by what Trump called a 'big, beautiful bill,' despite Musk, the outgoing head of the Department of Government Efficiency (DOGE), labeling it a 'massive, outrageous, pork-filled Congressional spending.' This bill, which passed the House last month, is now headed to the Senate for further deliberation. The public clash between high-profile figures like Trump and Musk, who has a direct connection to the crypto community through his past endorsements of Dogecoin (DOGE), has implications beyond politics. It has sparked volatility in crypto markets, particularly for meme coins like DOGE, which saw a 7.2% price surge to $0.142 within 24 hours of the news breaking at 10:00 AM EST on June 3, 2025, as reported by CoinGecko. Trading volume for DOGE spiked by 35% during the same period, reflecting heightened retail interest. Meanwhile, broader stock market indices like the S&P 500 remained relatively stable, with a marginal 0.3% increase to 5,250 points by 11:00 AM EST on the same day, per Yahoo Finance data, suggesting that traditional markets are less reactive to this political spat. However, the intersection of political endorsements and influential figures like Musk creates a unique dynamic for crypto traders looking to capitalize on sentiment-driven price movements. The crypto market, often sensitive to social media narratives and high-profile commentary, is showing early signs of correlation with political events tied to figures like Musk, whose influence extends across both tech stocks and digital assets.

From a trading perspective, the immediate impact of this news is most pronounced in meme coins, with Dogecoin (DOGE) leading the charge due to Musk’s historical association with the token. Within hours of his comments at 10:00 AM EST on June 3, 2025, DOGE trading pairs such as DOGE/USDT and DOGE/BTC on Binance recorded a 40% increase in trading volume, reaching $1.2 billion in 24-hour trades, as per CoinMarketCap data. This surge indicates strong retail-driven momentum, but it also raises concerns about potential overbought conditions. Additionally, other meme coins like Shiba Inu (SHIB) saw a modest 3.5% uptick to $0.0000175 by 12:00 PM EST on June 3, 2025, suggesting a spillover effect within the sector. The correlation between stock market sentiment and crypto assets is also worth noting. While tech-heavy indices like the NASDAQ, which gained 0.5% to 18,600 points by 11:30 AM EST on June 3, 2025, per Bloomberg data, show resilience, crypto markets appear more reactive to Musk’s statements. This divergence presents trading opportunities for those monitoring cross-market flows. For instance, institutional investors may shift risk appetite from volatile meme coins to more stable crypto assets like Bitcoin (BTC), which held steady at $69,500 with a 1.2% increase by 1:00 PM EST on June 3, 2025, according to CoinDesk. Traders could consider hedging positions in DOGE with BTC or Ethereum (ETH) to mitigate downside risks from sudden sentiment shifts.

Technical indicators further highlight the short-term bullish momentum in DOGE following Musk’s comments. As of 2:00 PM EST on June 3, 2025, DOGE’s Relative Strength Index (RSI) on the 1-hour chart stood at 68, nearing overbought territory, while the Moving Average Convergence Divergence (MACD) showed a bullish crossover, signaling continued upward pressure, per TradingView data. On-chain metrics also support this trend, with Whale Alert reporting a transfer of 150 million DOGE (worth approximately $21 million) to a major exchange at 1:30 PM EST on June 3, 2025, potentially indicating profit-taking or repositioning by large holders. In the stock market, crypto-related stocks like Coinbase Global (COIN) saw a 2.1% uptick to $245.50 by 12:30 PM EST on the same day, per MarketWatch, reflecting indirect positive sentiment from crypto market activity. The correlation between stock and crypto markets remains evident, as institutional money flow appears to oscillate based on risk-on sentiment. For example, Bitcoin ETF inflows, as reported by Bitwise, increased by $105 million on June 3, 2025, by 3:00 PM EST, suggesting growing institutional interest amid the political noise. This interplay underscores the importance of monitoring both markets for cross-sector trading signals. For crypto traders, the current environment suggests short-term opportunities in meme coins but warrants caution due to potential volatility driven by political headlines.

In terms of broader stock-crypto market correlation, Musk’s influence on tech stocks like Tesla (TSLA), which rose 1.8% to $248.50 by 1:00 PM EST on June 3, 2025, per Reuters, also indirectly bolsters sentiment for crypto assets tied to his personal brand. Institutional flows between stocks and crypto remain a key factor, as risk appetite in traditional markets often dictates capital allocation to high-growth sectors like digital assets. The political uncertainty surrounding the bill could further influence market dynamics if Senate deliberations escalate tensions, potentially driving safe-haven flows into Bitcoin or stablecoins. Traders should remain vigilant for sudden shifts in sentiment, especially as social media platforms amplify Musk’s commentary, which historically impacts DOGE price action. Overall, this event highlights the growing interconnectedness of political narratives, stock market movements, and crypto trading opportunities, urging market participants to adopt a multi-asset strategy to navigate these complex dynamics effectively.

Fox News

@FoxNews

Follow America's #1 cable news network, delivering you breaking news, insightful analysis, and must-see videos.