Tesla Billionaire Elon Musk Issues Warning Of US$35 Trillion ‘Bankruptcy’ Predicted To Trigger Bitcoin Price Boom

Bitcoin
Bitcoin
and crypto prices have crashed this week after BlackRock’s chief executive a “crazy” Federal Reserve warning.

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The price of bitcoin has fallen to nearly $60,000 per bitcoin, wiping out much of the gains made after the Chinese bomb.

Now, after Elon Musk revealed details of his secret meeting with El Salvador’s bitcoin-supporting president Nayib Bukele, billionaire Tesla has warned the US is headed for bankruptcy after US debt jumped $204 billion in one day.

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“America is going bankrupt,” Musk posted to X, the social media platform he bought and rebranded from Twitter, linking to the United States’ debt report on October 1.

“Federal debt exploded on the 1st day of the new fiscal year, jumping $204 billion to a new record of $35.669 trillion, but worse: The Treasury also had to reduce its cash balance by $72 billion—that’s more than $275 billion in the red. one day,” EJ Antoni, an economist with the conservative Heritage Foundation, posted.

Last month, Musk met with El Salvador’s bitcoin-supporting president Nayib Bukele, who made history when he adopted bitcoin as legal tender in El Salvador in 2021, and Bukele predicted the US’s days may be numbered.

US debt interest payments are forecast to hit $870 billion this year, according to an analysis by the Congressional Budget Office earlier this year after runaway inflation prompted the Federal Reserve to raise interest rates at a clip not seen before in the wake of the Covid-19 pandemic. spending -era and money-printing.

The US national debt has skyrocketed in recent years, crossing the $34 trillion mark in early 2024, largely due to Covid and lockdown stimulus measures.

“As both Republican and Democratic parties do not appropriately address the ever-increasing US debt and deficits during this election, this will be very bullish for bitcoin especially post US election,” CK Zheng, chief investment officer of crypto hedge fund ZX Squared Capital. , told Cointelegraph.

Earlier this year, Bank of America analysts warned that the US debt burden is about to increase to add $1 trillion every 100 days—potentially causing a spike in bitcoin prices—and could reach $36 trillion by the end of 2024.

Last month, the Fed began its cycle of interest rate cuts, taking markets by surprise with a 50 basis point reduction and dashing expectations of a cut of the same size in November—described as “crazy” by BlackRock’s chief executive.

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Forbes‘Strap In’—Serious $40,000 Bitcoin Price Crash Warning Is Issued As Fed Suddenly Goes Into US Dollar ‘Crisis’ Predicted To Trigger ‘Total Collapse’by

Bitcoin price swings this week come as tensions rise in the Middle East between Israel and its neighbors, and fears of growing regional conflict could spiral into a wider war – highlighting bitcoin’s role as a US dollar and debt hedge.

“Bitcoin price watchers this week will once again note that it is not a safe haven against geopolitical issues,” Geoff Kendrick, head of crypto research at Standard Chartered Bank, wrote in an emailed note.

“I think this is normal. Gold is a geopolitical hedge. Bitcoin is a hedge against [traditional finance] issues like bank collapses… or de-dollarization/US Treasury sustainability issues.”