Updated on 10/20 below. This post was first published on October 18th
Tesla billionaire Elon Musk may have intended to “keep Dogecoin in the Treasury,” but Tesla's sudden move of Bitcoin this week sparked a Bitcoin price panic.
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Bitcoin prices have soared towards an all-time high of about $70,000 per Bitcoin in recent weeks, thanks to BlackRock and China, but Tesla's $750 million worth of Bitcoin has been lost since two years. The vehicle has stalled since it was moved to a new address after a period of inactivity, leading to speculation that Tesla may have committed fraudulent transactions. I sold the remaining Bitcoin.
Billionaire investor Stanley Druckenmiller issues a dire warning to the Federal Reserve, while Elon Musk has repeatedly warned that the US is heading towards the brink of “bankruptcy.”
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Tesla billionaire Elon Musk has repeatedly warned that the United States is headed for “bankruptcy.” … [+]
“Excessive government spending is driving America into bankruptcy,” Musk posted on social media platform X, which he acquired from Twitter and rebranded.
Musk's post cited an anonymous financial account saying that “the national debt has increased by $500 billion in the last three weeks alone,” adding, “The government is out of control.”
Meanwhile, Musk spoke at a city council meeting in Folsom, Pennsylvania, warning that inflation could spiral out of control again as a result of “crazy” government spending.
“The federal government is driving America into bankruptcy…and that's when you really get inflation…when the government spends more than it brings in,” Musk said, calling it a “harmful” tax. is.
“We need to drastically cut government spending to avoid accumulating unpayable government debt and pushing the country into bankruptcy,” Musk said.
Updated 10/20: Elon Musk continues to warn that US spending is spiraling out of control. Post I told X, “This has to stop.''
“The United States Treasury, and the people's tax dollars, are being wasted at an alarming rate,” Musk wrote, citing a post from a political action committee (PAC) he founded, adding, “In 2016… 5 trillion dollars in national debt has been added to the total.” This is for the past three weeks. ”
“Wasteless spending is out of control in this country,” America PAC posted, adding that “a Department of Government Efficiency is desperately needed.”
Musk has agreed to lead the so-called “Department of Government Efficiency” proposed by former US president and Republican candidate Donald Trump. The ministry is called “Doge” after the meme that is also the basis of the cryptocurrency Dogecoin.
The cryptocurrency Dogecoin, a cynical rival to Bitcoin that Musk has semi-adopted in recent years, saw its price soar 25% last week following comments from Musk's Doge unit. Billionaire Mark Cuban joked that Musk could “park Dogecoin in the US Treasury” if Donald Trump retakes the White House next month..
Last month, Musk met with Salvadoran President Nayib Boucle, a Bitcoin supporter who made history by adopting Bitcoin as legal tender in El Salvador in 2021. He predicted that he might not have long to live.
The U.S. national debt has soared in recent years, surpassing the $34 trillion level in early 2024, largely due to COVID-19 and lockdown stimulus, as inflation spirals out of control and the federal The Reserve Board was forced to raise interest rates by historic levels.
Earlier this year, Bank of America analysts predicted that the U.S. debt burden would increase by $1 trillion every 100 days, potentially fueling a surge in Bitcoin prices, and could reach $36 trillion by the end of 2024. warned that it could reach .
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Bitcoin price returns to all-time highs this year, surging as Federal Reserve policy accelerates … [+]
Earlier this month, JPMorgan analysts predicted that so-called “downgrade trades” could fuel a boom in Bitcoin prices ahead of the US election.
Analysts say that if Trump wins, gold and bitcoin will be affected by “high government deficits across major economies, declining confidence in fiat currencies in some emerging markets, and broader diversification away from the dollar.” It is said that there is a possibility of an increase. Strengthen the derogatory trade.
JPMorgan analysts led by Nikolaos Panigirtzoglou said: “Rising geopolitical tensions and the upcoming US election are reinforcing what some investors are calling a 'subsidence trade', leading to and Bitcoin are likely to be favorable,” JPMorgan analysts led by Nikolaos Panigirtzoglou said in a note to clients. market watch.
