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

Connect Wallet Sign In Home Web3 Community beta News Crypto Prices NFT Prices Learn More BETA Top 10 Bitcoin Bitcoin btc $68,753.00 +1.72% Ethereum Ethereum eth $2,513.19 +0.81% Tether Tether usdt $1.00 +0.01% BNB BNB bnb $591.66 +0.90% Solana Solana sol $174.66 -0.34% USDC USDC USDC USDC $1.00 -0.00% XRP XRP x Author Follow Click to follow this author. Each week, we'll send you an email with the best stories from your favorite authors. Got it Oct. 27, 2024, 7:15 a.m. EDT Save Article Comment 28 Tesla billionaire Elon Musk has repeatedly warned that the United States is on the verge of "bankruptcy" in recent weeks. This week, Musk shocked traders by announcing his support for bitcoin. Unlock over $3,000 in benefits, including free access to Forbes.com and our Forbes CryptoAsset & Blockchain Advisor newsletter, unparalleled access to a community of top Web3 entrepreneurs, creators, and investors, premium networking opportunities, and priority access to global events. Apply now! This year, fears over the spiraling $35.7 trillion debt pile have driven up the price of bitcoin, pushing gold to an all-time high. The Federal Reserve is in a "nightmare" situation. Presently, Musk, who is staying at work past 40 hours to get "crypto president" Donald Trump once more into the White House, has called the U.S. government's $1 trillion every year premium installments a "monetary crisis," as expansion fears push one more incredible financial backer to purchase bitcoin and gold. "Just the interest payments on the debt are 23% of all federal tax revenue," Tesla chief executive Elon Musk has warned the [+] Anadolu Agency via Getty Images "Just the interest payments on the debt are 23% of all federal tax revenue," Musk said during a Trump campaign rally, later referring to the situation as a "financial emergency" on X. "The interest payments now exceed the Defense Department budget, which is $1 trillion a year." The CryptoCodex is a daily, five That is quite a sum of money." Investors are betting that higher interest rates, combined with a significant increase in deficits, will result in a feedback loop that will force governments to print more money. As a result, the price of bitcoin has returned to just below its all-time high of $70,000 per bitcoin this year, rocketing higher along with the price of gold. When Tesla abruptly moved its bitcoin to new wallets last week, there were concerns that the company might be about to cash out. However, Tesla continues to hold approximately 10,000 bitcoin—also known as digital gold—worth almost $800 million on its balance sheet. Covid and lockdown stimulus measures, which sent inflation spiraling out of control and compelled the Federal Reserve to hike interest rates at a historic rate, are largely to blame for the skyrocketing U.S. national debt, which reached $34 trillion at the beginning of 2024. By bitcoin, bitcoin price, Tesla, Elon Musk, crypto, gold, Paul Tudor Jones, chart The bitcoin price has topped its previous peak [+] Forbes Digital Assets Earlier this year, Bank of America analysts warned that the U.S. debt load is about to ramp up to add $1 trillion every 100 days—potentially fueling a bitcoin price surge—and could reach $36 trillion by the end of 2024. Sign up now for CryptoCodex, a free, daily newsletter for the crypto-curious. Paul Tudor Jones, a legendary billionaire investor, stated to CNBC this week that "all roads lead to inflation" and that as a result, he is "long gold" and "long bitcoin." "The deficit rises by $500 billion annually under Trump; It rises by an additional $600 billion annually under the plan of [vice president Kamala] Harris. Tudor Jones, who earlier this year warned of a "debt bomb" in the United States as a result of "fiscal recklessness," stated, "I have a feeling all those are just pipe dreams." CryptoCodex: A daily, free newsletter for crypto-curious individuals Sign Up With your email address, you agree to our Terms of Service and Privacy Statement. Forbes is secured by reCAPTCHA, and Google's Terms of Service and Privacy Policy apply. When Tudor Jones became one of Wall Street's first bitcoin backers in 2020, he called it the "fastest horse to beat inflation," which helped kick off the Covid era bull run in bitcoin and cryptocurrencies. Follow my Twitter account. Forbes Accolades Join The Conversation One Community for Editorial Standards. Several Voices To share your thoughts, create a free account. Find the rules for our community here. 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