Tesla chief executive Elon Musk, the former “first buddy” who was U.S. president Donald Trump’s right-hand man until recently, has announced he’s starting his own political party called the “America Party" (while dropping hints he’s still backing bitcoin).
Musk, whose stark warnings over the spiraling $37 trillion U.S. debt pile were a big part of his campaign to get Trump back into the White House last year, has fallen out with Trump over the raising of the U.S. debt ceiling in Trump’s signature "one, big, beautiful bill."
Now, as the bitcoin price is braced for “trillions and trillions” to hit the market, bitcoin and crypto analysts are predicting a bitcoin price boom as a result of the U.S.’s “massive fiscal expansion.”
“Nothing stops this train,” Lyn Alden, a financial commentator and founder of Lyn Alden Investment Strategy, said during this year’s bitcoin conference in Las Vegas, a reference to TV show Breaking Bad that she used to describe the U.S. deficit that added almost $2 trillion to the U.S. debt pile in 2024.
Musk has pointed to Trump “increasing the deficit from an already insane $2 trillion under Biden to $2.5 trillion,” as why he’s decided to start the America Party, posting to X that, “This will bankrupt the country.”
07/07 update: Elon Musk has confirmed the wild rumors and speculation that his new America Party could adopt bitcoin, replying to an X user that asked: "Will America Party embrace bitcoin?"
Fiat is hopeless, so yes,” Musk wrote, sending the bitcoin price higher, and referring to government-backed currencies known as fiat, rather than asset-backed currencies, which the dollar was before it abandoned the gold standard.
Elon Musk’s hot-and-cold relationship with bitcoin has meant that even small references or mentions of bitcoin and crypto can cause prices to ricochet wildly.
While Musk has abstained from directly commenting on bitcoin and crypto over the last couple of years, his car company Tesla continues to hold around 10,000 bitcoin on its balance sheet and his support of U.S. president Donald Trump has coincided with the White House throwing its weight behind bitcoin.
Since Musk announced he’d be creating a new U.S. political party, bitcoin and crypto traders have speculated if he’d back bitcoin over the U.S. dollar.
An X account called @AmericaPartyX, which is described as a "commentary account" and clarifies in its bio it has “no affiliation,” has repeatedly interacted with bitcoin accounts and posted pro-bitcoin messages, stoking expectations Musk’s political party would support bitcoin.
Last week, X users were captivated by unconfirmed claims that Musk had "liked" a post suggesting he’s "quietly stacking" bitcoin as he rails against the growing U.S. debt pile.
Has anyone noticed how Elon Musk talks a lot about things like overspending and debt and bad government decisions in general, but has completely stopped talking about bitcoin," an anonymous bitcoin account posted, with the account of bitcoin storage company chief executive Seedor known only as Chris, replying: “Maybe be is stacking quietly.”
Chris then shared a screen recording to X that appears to show Elon Musk’s X account liking the post, tagging two viral bitcoin content accounts.
However, doubts immediately surfaced that the account appearing to be Musk's didn't have a verification badge as well as claims that Chris has previously trolled people with photoshopped images.
Musk has said he believes president Trump as well as Republican Party politicians who won last year’s election on a spending-reduction platform have betrayed voters who want government spending to be reined in.
Fears over the U.S. debt pile have taken hold among investors on Wall Street and in Silicon Valley, with David Friedberg, a host of the influential All In Podcast that’s had both Musk and Trump on as guests, declaring: "We are in a fiscal emergency in this country and we’re not addressing it."
U.S. debt has skyrocketed in recent years following huge government spending through the Covid-era and lockdowns, with interest rates that were rapidly hiked to rein in inflation adding to the cost of servicing the ballooning $37 trillion U.S. debt pile.
