Billionaire Elon Musk has publicly endorsed Bitcoin (BTC) for the first time in years, describing it as “based on energy” in a statement that reignited debate across global financial markets. His comments come as cryptocurrencies face intense volatility and investor sentiment wavers amid a historic selloff.
The statement was a reply to a post by ZeroHedge discussing the rise of gold, silver, and Bitcoin as part of the so-called “debasement trade” — a response to governments increasing monetary supply to fund the rapidly expanding AI arms race. Musk emphasized that global capital expenditure in AI infrastructure, particularly from the U.S. and China, will likely accelerate monetary debasement, making energy-backed assets like Bitcoin more valuable.
This marks a sharp contrast to Musk’s earlier criticism of Bitcoin’s energy usage, signaling a renewed confidence in the cryptocurrency’s fundamental value.
Bitcoin Rebounds on Musk’s Endorsement
Following Musk’s remarks, Bitcoin prices saw an immediate, albeit modest, recovery. The world’s largest cryptocurrency rose 1.5% to trade around $112,011, with intraday swings between $111,569 and $116,020. The rebound helped ease concerns after last week’s steep losses, which erased over $200 billion in market capitalization across the crypto sector.
Market data from CoinGlass showed a slight uptick in derivatives activity, with BTC futures open interest rising 0.1% to $72.98 billion in an hour, even as total interest remained down 3.5% over the past 24 hours. Trading volume, however, fell by 18%, reflecting cautious sentiment ahead of Federal Reserve Chair Jerome Powell’s upcoming speech on monetary policy.
Key market takeaways:
- BTC price rebounded to $112K after Musk’s comments
- 24-hour trading volume declined 18%, signaling reduced speculation
- Derivatives data show small but steady accumulation by long traders
From Bitcoin Skeptic to Political Backer
Musk’s pro-Bitcoin statement signals a striking turnaround from his 2021 criticism of the cryptocurrency’s environmental footprint. The Tesla and SpaceX CEO had previously paused BTC payments at Tesla, citing sustainability concerns.
In recent months, Musk has shifted his tone, advocating for a “sound money” framework and hinting at the creation of a pro-Bitcoin U.S. political party. He has also continued promoting Dogecoin (DOGE), suggesting it may be integrated into the upcoming X Money payment system.
Meanwhile, Musk has repeatedly warned of the dangers of rampant money printing, describing the U.S. government’s fiscal policies as reliant on “magic money computers.” With national debt surpassing $37 trillion, his endorsement of Bitcoin as an energy-backed alternative reflects a growing chorus of concern over fiat instability.
For Bitcoin holders, Musk’s latest remarks arrive as a much-needed morale boost during one of the most turbulent periods in crypto history. While traders remain cautious, his words have once again shown that a single comment from the billionaire can sway the market’s momentum.
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