Tesla billionaire Elon Musk, who surprised traders this week with his shocking support for Bitcoin, has repeatedly warned in recent weeks that the United States is on the brink of “bankruptcy.”
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Bitcoin prices have soared this year as concerns about a skyrocketing $35.7 trillion debt mountain pushed gold prices to record highs and the Federal Reserve fell into a “nightmare” scenario.
Musk, who is currently working overtime to bring “crypto president” Donald Trump back to the White House, is trying to get the U.S. government's He called the $1 trillion annual interest payments a “fiscal emergency.” gold.
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Tesla CEO Elon Musk has warned that the US debt, which has ballooned to $35 trillion, is in dire straits. … [+]
“The debt interest payments alone represent 23% of all federal tax revenue,” Musk said at a Trump campaign rally, later calling the situation a “financial emergency” for Company X. “Interest payments currently exceed the Pentagon's budget. That's $1 trillion a year.”
Bitcoin prices have returned to an all-time high of just under $70,000 per Bitcoin this year, and have soared along with the price of gold. That's because investors are betting that rising interest rates and a sharp increase in the budget deficit will create a feedback loop that will force governments to take action. Please print more money.
Tesla continues to hold about 10,000 Bitcoins (also known as digital gold) worth about $800 million on its balance sheet, and last week it suddenly moved the Bitcoins to a new wallet, making it close to cashing in. There were concerns that this was approaching.
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.
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Bitcoin prices have soared to more than $70,000 per Bitcoin this year, surpassing all-time highs. … [+]
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 .
This week, legendary billionaire investor Paul Tudor Jones warned that “all roads lead to inflation,” saying: CNBC As a result, he is “long gold” and “long Bitcoin.”
“Under the Trump administration, the deficit will increase by $500 billion annually; Under the Trump administration, the deficit will increase by $500 billion annually.” [vice president Kamala] Harris' plan would increase it by an additional $600 billion a year. All of this feels like a pipe dream,” Tudor-Jones warned earlier this year of a “debt bomb” in the US as a result of “fiscal recklessness.”
In 2020, Tudor-Jones came forward as one of Wall Street's first Bitcoin backers, helping to start the coronavirus bull market for Bitcoin and cryptocurrencies, calling it the “fastest way to beat inflation.” It was called “Horse”.
