Elon Musk Says His “America Party” Will Embrace Bitcoin, BTC Briefly Hits $110,000
In a surprising development that stunned markets and social media, political tech magnate Elon Musk announced today that if he were to launch his own political party – dubbed the “America Party” – it would certainly be pro-Bitcoin.
When answering a question from a commentator under his tweet about whether his party would embrace Bitcoin, Musk stated: “Fiat is hopeless, so yes.” Soon after that, the world’s pioneer cryptocurrency soared from $108,850 to nearly $110,000 per coin. However, soon after that, Bitcoin went down, losing 1.60% and trading at $107,965, displaying a significant price correction.
Musk assumes Bitcoin could gain political support in future
Musk’s message was clear and somewhat provocative, saying that he believes America needs a new currency and Bitcoin could easily replace the fiat dollar. This statement made by the world’s richest tech mogul carries a lot of weight. As he stated that, the Bitcoin community rejoiced, starting to publish numerous posts about that, and investors rushed to acquire BTC, driving its price up.
This would have been another example of Musk’s power to move markets with a single tweet if it had not been so short-lived.
After that, Musk retweeted a post with his own quote, where he doubted all the efforts of the Department of Government Efficiency (D.O.G.E.) which he headed before, because Donald Trump’s “Big Beautiful Bill” raising the ceiling for the national debt by a whole $5 trillion over the next four years. The estimated savings that D.O.G.E. managed to bring totalled approximately $190 billion, he pointed out, hinting that all his efforts in this organization have proved to be meaningless.
Musk’s decision to create his own political party was driven to the fact that both the Democratic and the Republican parties have supported the increase of the debt ceiling.
Is Elon Musk quietly accumulating Bitcoin?
Trump’s bill also includes tax deductions and overall some fiscal support amid global economic uncertainty and escalating geopolitical tensions. Still, while Trump intends to increase the national debt, his stance remains highly pro-crypto. In March, he signed an executive order to command the creation of the Strategic Bitcoin Reserve for the US.
The 200,000 BTC that the government already holds (after confiscating it from illegal activities related to the Silk Road) is meant to be the first batch to add to this strategic reserve. Currently, Bo Hines, the executive director at the President’s Council of Advisers for Digital Assets, says that the government is looking for ways to accumulate more Bitcoin without using taxpayers’ money.
Coming back to Elon Musk, there are rumors that Elon Musk has been quietly accumulating Bitcoin amid the rising prospects of the national debt increase. Chris Seedor, cofounder and CEO of Seedor GmbH, stated that Musk liked his X post speculating that the Tesla boss has been buying Bitcoin on the quiet. Seedor shared screenshots that show Musk’s “like” under his tweet.
In 2021, Musk announced that Tesla had acquired $1.3 billion worth of Bitcoin, adding it to its balance sheet. The company also began to accept BTC payments for its electric automobiles. That did not last long, though, and in April Musk cancelled that innovation over environmental concerns around Bitcoin mining. Tesla still holds some Bitcoin from that 2021 purchase, and so does SpaceX.
Trump trashes Fed Reserve chairman Powell
In the middle of June, during a scheduled FOMC meeting, the chairman of the US Federal Reserve, Jerome Powell, announced that the US central bank intends to leave the interest rate unchanged for the time being.
Trump was furious at this decision, believing that the economy had recovered, the gasoline prices had dropped to $2, and the non-farm payrolls had come out higher than expected. Still, the Fed Reserve preferred to be cautious and not to cut rates yet. Trump pointed out that Europe has already had ten rate cuts and the US should follow it. He believes that lower rates would save the US budget around $600 billion. If something went wrong, Trump stated, the Fed can always increase the rates again.
He referred to Powell as “a stubborn mule” and “a stupid person.” Powell explained that the Fed Reserve decided to leave the rates unchanged due to the economic uncertainty caused by trade tariffs against Canada, China, Europe, and, basically, the rest of the world. These tariffs are threatening the US economy in the long-term perspective, Powell believes.
Meanwhile, Bitcoin treasury companies continue to accumulate Bitcoin in the US and Europe. Metaplanet has announced yet another BTC acquisition, 2,205 BTC, and Strategy has announced a $4.2 billion fundraising campaign by issuing STRD Bitcoin-backed securities to accumulate more Bitcoin. Several other companies have added Bitcoin to their treasuries too amid growing concerns of economic uncertainty and national debt’s potential further increase.
