Bitcoin has soared to unprecedented levels, surpassing $81,000 amid growing enthusiasm from prominent figures like Elon Musk and U.S. President-elect Donald Trump.
Musk, a long-time crypto advocate, and Trump have both proposed using cryptocurrency to address America’s escalating debt. Musk took to X to express his concerns over America’s mounting debt, labeling it “unsustainable” and warning of an impending “financial emergency.” He emphasized that excessive government spending is pushing the U.S. closer to bankruptcy.
“Excess government spending is driving America into bankruptcy. This debt growth is unsustainable,” Musk posted on X.
Trump, who has recently been elected as the 45th President of the United States, proposed an unconventional solution earlier this year. In August, he suggested using Bitcoin to help pay down the national debt, which now stands at $35 trillion. “Hand them a little crypto check, right? We’ll hand them a little bitcoin and wipe out our $35 trillion,” Trump said, echoing Musk’s concerns about debt while adding his brand of humor.
The potential for a pro-crypto U.S. administration under Trump has catalyzed an impressive rally for Bitcoin, as well as other cryptocurrencies. Investors expect a Trump presidency to bring favorable regulation for crypto, with Trump pledging to sack SEC chairperson Gary Gensler, known for strict regulations on the crypto industry. Trump’s stance signals the possibility of a friendlier regulatory environment and the formation of a U.S. bitcoin reserve, promising to position the U.S. as “the crypto capital of the planet.”
The impact of these endorsements has been profound. Bitcoin hit $81,200 on Sunday, rising nearly 5% within 24 hours, marking a 65% increase from its January low of $38,505. The overall market sentiment is bullish, with other cryptocurrencies, including Musk-favored dogecoin, also gaining in value.
According to Nigel Green, CEO of the deVere Group, “Many investors anticipate that a Trump victory will clear the path for mainstream adoption and regulation that is both favorable and necessary for Bitcoin’s continued growth.”
He noted that “this pro-crypto narrative could pave the way for regulatory clarity, bolstering institutional investments that could send bitcoin to unprecedented heights.”
As Trump prepares for office, the crypto community eagerly watches for potential policy shifts that could validate Bitcoin’s role in U.S. finance. With Musk and Trump pushing for change, Bitcoin and other cryptocurrencies could gain ground as mainstream assets in the years to come.