Tesla billionaire Elon Musk sparked panic in the bitcoin market after moving $750 million worth of bitcoin to new addresses. This move led to speculation that Tesla may have sold off its remaining bitcoin holdings. In addition, billionaire investor Stanley Druckenmiller warned about the Federal Reserve, and Musk echoed this sentiment by stating that the U.S. is heading towards bankruptcy due to excessive government spending. Musk called for a reduction in government spending to avoid an uncontrollable national debt. Furthermore, Musk suggested the creation of a Department of Government Efficiency and agreed to lead it. The U.S. national debt has been rapidly increasing, reaching $34 trillion at the beginning of 2024. The debt is expected to continue growing, potentially fueling a surge in the price of bitcoin. JPMorgan analysts also predicted that bitcoin and gold could benefit from a "debasement trade" triggered by persistently high government deficits and waning confidence in fiat currencies.



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