Tesla Billionaire Elon Musk Issues $35 Trillion U.S. ‘Bankruptcy’ Warning – Predicted To Trigger A Bitcoin Price Boom

Elon Musk, the billionaire CEO of Tesla, has issued a stark warning about the U.S.’s financial future, predicting a looming bankruptcy due to skyrocketing national debt—a scenario he believes could trigger a major bitcoin price boom.

The warning came after the U.S. national debt surged by $204 billion in just one day, hitting a record high of $35.7 trillion on October 1. Musk took to X, the social media platform he rebranded from Twitter, to voice his concerns. “America is headed for bankruptcy,” Musk posted, linking to reports of the dramatic increase in federal debt.

The Tesla billionaire’s comments align with growing fears about the U.S. economy, particularly following his recent meeting with El Salvador’s president, Nayib Bukele, who famously adopted bitcoin as legal tender in his country in 2021. Bukele had previously suggested that the U.S.’s financial dominance could be waning, adding weight to Musk’s warning.

Economist EJ Antoni, of the conservative Heritage Foundation, highlighted the scale of the financial challenge, noting that in addition to the surge in debt, the U.S. Treasury had to draw down $72 billion in cash reserves, putting the government over $275 billion in the red in just one day.

The U.S.’s mounting debt has been a source of concern for some time, with interest payments projected to reach $870 billion this year. Analysts have pointed to the Federal Reserve’s aggressive interest rate hikes, driven by runaway inflation and massive COVID-19-era spending, as key factors behind the ballooning debt.

With the U.S. debt now expected to surpass $36 trillion by the end of 2024, some experts, including CK Zheng of crypto hedge fund ZX Squared Capital, believe this financial instability could be bullish for bitcoin, particularly after the upcoming U.S. elections.

The recent downturn in bitcoin’s value, which has dropped to around $60,000 per bitcoin following a sharp fall this week, may only be temporary. Analysts suggest the worsening U.S. debt crisis could spark a new surge in the cryptocurrency’s value as investors seek safer, decentralized alternatives to traditional financial systems.

This financial storm, coupled with warnings from major players like Musk, could mark a turning point for bitcoin and the wider cryptocurrency market.