Tesla Billionaire Elon Musk Declares ‘Financial Emergency’ As $35.7 Trillion ‘Debt Bomb’ Primes A Bitcoin Price Boom To Rival Gold

 

 

Tesla Billionaire Elon Musk Declares ‘Financial Emergency’ As $35.7 Trillion ‘Debt Bomb’ Primes A Bitcoin Price Boom To Rival Gold

 

Tesla billionaire Elon Musk, who surprised traders with a shock bitcoin endorsement this week, has repeatedly warned in recent weeks that the U.S. is teetering on the brink of “bankruptcy.”

 

Unlock over $3,000 in perks including unparalleled access to a community of top Web3 entrepreneurs, creators, and investors, providing you with premium networking, priority access to global events, Free access to Forbes.com and our Forbes CryptoAsset & Blockchain Advisor newsletter. Apply now!

 

The bitcoin price has surged this year as fears over the spiraling $35.7 trillion debt pile pushes the price of gold to an all-time high—with the Federal Reserve caught in a “nightmare” scenario.

 

Now, Musk, who is working overtime to get “crypto president” Donald Trump back into the White House, has called the U.S. government’s $1 trillion per year interest payments a “financial emergency,” as inflation fears push another legendary investor to buy bitcoin and gold.

 

 

Forbes

A ‘Declaration Of War’—Fed And ECB Plot To ‘Tax Or Ban’ Bitcoin And Use Price Gains To Escape $35.7 Trillion Doom Loop

 

spiraling U.S. debt of $35 trillion has become a “financial emergency”—with the debt predicted by some to push up the bitcoin price alongside gold.

 

“Just the interest payments on the debt are 23% of all federal tax revenue,” Musk said during a Trump campaign rally, later calling the situation a “financial emergency” on X. “The interest payments now exceed the Defense Department budget, which is $1 trillion a year. That’s a lot of money.”

 

The bitcoin price has returned to just below its all-time high of $70,000 per bitcoin this year, rocketing higher along with the gold price, as investors bet higher interest rates combined with a huge increase in deficits will create a feedback loop, forcing governments to print more money.

 

Tesla continues to hold around 10,000 bitcoin—sometimes called digital gold—worth almost $800 million on its balance sheet, last week sparking fears it could be about to cash out when it suddenly moved its bitcoin to new wallets.

 

U.S. national debt has skyrocketed in recent years, crossing the $34 trillion mark at the beginning of 2024, largely due to Covid and lockdown stimulus measures that sent inflation spiraling out of control and forced the Federal Reserve to hike interest rates at a historical clip.

 

 

Forbes

‘Digitizing The Dollar’—BlackRock CEO Reveals His Radical Plan For AI-Powered Crypto That’s Predicted To Blow Up The Price Of Bitcoin And Ethereum

By

bitcoin, bitcoin price, Tesla, Elon Musk, crypto, gold, Paul Tudor Jones, chart

The bitcoin price has topped its previous peak [+]

this year, soaring to over $70,000 per bitcoin as Tesla billionaire Elon Musk joins calls for the U.S. to cut spending.