Billionaire Elon Musk’s surprise endorsement of Bitcoin this week has stunned traders, as he has repeatedly warned in recent weeks that the United States is on the brink of “bankruptcy.” Bitcoin prices have surged this year on fears of a $35.7 trillion debt pile, pushing gold to record highs amid a “nightmare” scenario facing the Federal Reserve.
Financial Warnings From Elon Musk 🔥🔥
Musk is working hard to bring “crypto president” Donald Trump back to the White House, and he has described the US government’s $1 trillion in annual interest payments as a “fiscal emergency,” as inflation fears have prompted another legendary investor to buy bitcoin and gold. “Interest payments account for 23% of all federal tax revenue,” Musk declared, later calling the situation a “fiscal emergency.” He also noted that interest payments now outweigh the Department of Defense’s $1 trillion annual budget.
Bitcoin Rise and Tesla Moves🔥🔥
Bitcoin prices have surged this year to near record highs of $70,000 per bitcoin, coinciding with a rally in gold prices as investors bet that rising interest rates combined with growing deficits will create a feedback loop that forces governments to print more money. Tesla continues to hold about 10,000 bitcoins — sometimes known as digital gold — worth about $800 million on its balance sheet, sparking concerns last week when it moved the bitcoins into new wallets.
Increase in the US national debt🔥🔥
The U.S. national debt has soared in recent years, surpassing $34 trillion at the start of 2024, as coronavirus-related stimulus measures and lockdowns have sent inflation spiraling and the Federal Reserve has cut interest rates at a historic pace.🔥🔥
Bank of America analysts warned earlier this year that the US debt burden was about to increase by $1 trillion every 100 days, which could send Bitcoin's price soaring and could reach $36 trillion by the end of 2024.
Legendary billionaire investor Paul Tudor Jones warned this week that “all roads lead to inflation,” noting that he is “investing in gold” and “investing in bitcoin” as a result.🔥
“The deficit under Trump is rising by $500 billion a year; under [Vice President Kamala] Harris’ plan it’s rising by an additional $600 billion a year,” Tudor Jones noted.🔥
In 2020, Tudor Jones helped kick off the Bitcoin and crypto bull run of the COVID era when he came out in support of Bitcoin as one of the first Wall Street backers, calling it “the fastest way to fight inflation.”🔥$BTC