- Musk has discredited fiat currencies for not providing hope to the people compared to Bitcoin.
- Both Tesla and SpaceX have held Bitcoin in their balance sheet for the past years.
- BTC price has signaled an early attempt to enter its parabolic phase of the 2025 rally.
After announcing the formation of a new “America Party” to rival the dominance of the Republican and Democratic parties, Elon Musk has announced the adoption of Bitcoin (BTC). Musk was replying to X user Renato Lima, who had asked whether his ‘America Party’ would embrace Bitcoin as a hedge against inflation.
The tech billionaire highlighted that “fiat is hopeless” for the people, thus signaling the importance of BTC in the human financial freedom struggle. Michael Saylor, Chairman at Strategy Inc., presented a similar approach, thinking that Bitcoin is hope for all people.
“Lima: Will the America Party Embrace Bitcoin?
Musk: Fiat if hopeless, so yes.”
Musk Remains Committed to Long-Term Growth for Bitcoin
For the past years, Musk has remained a key opinion leader within the cryptocurrency industry. During the 2021 crypto bull market, Musk’s involvement was evident through the Dogecoin (DOGE) memecoin.
Notably, Musk marketed Dogecoin during the 2021 bull rally, thus resulting in gains of about 23,894%. Musk’s involvement in the Dogecoin project attracted significant attention, with some investors filing a lawsuit accusing the tech billionaire of a pump-and-dump scheme.
However, Musk’s family of unicorns has embraced Bitcoin as a hedge against inflation and market uncertainty. According to market data from BitcoinTreasuries, Tesla Inc. has held 11,509 Bitcoins since February 8, 2021.
SpaceX, a space exploration company, has held 8,285 BTCs, worth about $903 million at the time of this writing. Both Tesla and SpaceX have adjusted their Bitcoin holdings in the past, including partial profit taking.
Meanwhile, Musk promised that Tesla will once again accept Bitcoin for customers seeking to purchase the electric cars, if the BTC miners largely shift to renewable energy.
BTC Price Attempts Bullish Breakout
The unwavering support for Bitcoin by the tech billionaire has instilled confidence in the flagship coin. With a mass following of more than 221 million X users, Musk’s endorsement of Bitcoin makes a huge impact amid the anticipated parabolic rally in 2025.
Following the announcement, BTC price jumped to reach a daily high of about $109,574 before retracing to trade around $108,816 on Monday during the early London session.
From a technical analysis standpoint, BTC price is well-primed to rally towards a new all-time high soon fueled by rising demand from institutional investors. According to data analysis from CryptoQuant, BTC price has regained its bullish momentum after the MVRV indicator rebounded from the 365-day average.
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