Elon Musk has Founded His Own Political Party in the USA! What Does Bitcoin (BTC) Mean, How Will It Affect?

Question

Tesla CEO Elon Musk announced his new political party, describing the national debt burden of over 37 trillion dollars in the U.S. as "a disaster leading the country to bankruptcy."

With this formation he named the "America Party", Musk clearly announced that he has separated from his old friend Donald Trump, who was re-elected last year. The developments brought with them a great expectation of a rise in the cryptocurrency market, especially for Bitcoin.

Speaking at the Bitcoin Conference held in Las Vegas, financial commentator Lyn Alden drew attention to the striking increase in the U.S. budget deficit, referencing the TV series Breaking Bad, and used the phrase "Nothing stops this train" (. Alden mentioned that an additional 2 trillion dollars will be added to the U.S. debt in 2024 alone.

Musk harshly criticized Trump’s new massive economic legislation, which he named "One Big Beautiful Bill." The law in question will increase the debt ceiling by 5 trillion dollars, adding an additional 3 trillion dollars in debt burden to the country. In a post on the X platform, Musk stated, "This will lead the country to bankruptcy," strongly attacking Trump. Musk also argued that Trump and the Republicans failed to uphold their promises to "cut spending" made during last year’s election.

Musk's move and the increasing monetary expansion in the U.S. have created excitement in the crypto market. Unity Wallet COO James Toledano commented, "The government's printing of money like this is weakening the dollar while strengthening Bitcoin's status as 'digital gold.'"

Crypto investor Lark Davis noted that after such large spending laws, Bitcoin generally provides double-digit gains, stating, "At the end of 2020, when Trump signed another large spending bill, Bitcoin rose by 38%. If the same model repeats itself, the BTC price could reach $150,000. Because nothing can stop this train."

David Friedberg, the host of the "All In Podcast," summarizes the situation as follows: "We are facing a financial emergency in this country, and no one is trying to solve it." The rapidly rising interest rates following the large stimulus packages during the pandemic are making it even more difficult to finance the U.S.'s $37 trillion debt.

The increasing trend of public spending and borrowing in the US is creating uncertainty in financial markets, while many investors are turning their attention back to digital assets with limited supply like Bitcoin. Elon Musk's newly founded political formation "America Party" indicates that this financial turmoil will have not only political but also economic consequences.