The CEO of Tesla took to the social media platform, X to call the ongoing situation a financial emergency.
In recent times, the price of bitcoin has traded very close to its all-time high of $70,000 which was recorded in March 2024.
The worth of Tesla’s bitcoin holdings is estimated to be $800 million, and the fears have so far triggered that it could be about to cash out when it suddenly moved the digital gold to anonymous wallets.
The chief executive officer of Tesla, Elon Musk has left traders in shock by promoting bitcoin this week. He has also continuously alerted in the past couple of weeks that the United States is walking unsteadily on the verge of bankruptcy.
The price of the leading cryptocurrency, Bitcoin, has skyrocketed in 2024 as fears over the escalating $35.7 trillion debt stack take up the price of traditional asset, gold to an all time high. This has led the Federal Reserve to be in night terrors.
At the same time, the CEO of Tesla is working hard to get the crypto president, Donald Trump back in power. Also, has referred to the $1 trillion per year interest payments by the government of the United States as a financial emergency. This inflation fear has resulted in other renowned investors to put their money in bitcoin and gold.
The financial emergency situation
In the political campaign rally of Trump, Musk has mentioned that, only the interest payments on the debt are about 23% of the total federal tax revenue. Also he took the social media platform, X to call the situation a financial emergency.
He further went on adding that the interest payments is more than the budget of the Defense Department, which is estimated at about $1 trillion per year which itself is a lot of money.
In recent times, the price of bitcoin has traded very close to its all-time high of $70,000 which was recorded in March 2024. It has surged more accompanied by the gold price, as investors bet higher interest rates amalgamated with a great surge in shortage which will result in making a feedback loop, pushing governments to release more money in circulation.
Investors are in a fear
Bitcoin is often compared as a digital gold and in the current times Tesla is the owner of about 10,000 bitcoin. The worth is estimated to be $800 million, and the fears have so far triggered that it could be about to cash out when it suddenly moved the digital gold to anonymous wallets.
In the start of 2024, the national debt of the United States has surpassed the $34 trillion benchmark and also a significant increase in the past few years has also been witnessed. The experts from the Bank of America have so far altered the United States that the debt load will grow significantly and will add about $1 trillion in every 100 days.
This could potentially push the price of Bitcoin and may also cross $36 trillion by December 2024. This week, Paul Tudor, an American billionaire, has also altered that all roads lead to inflation and he is a “long gold” and “long bitcoin” as an outcome.
