Elon Musk Endorses Bitcoin, Triggers Price Rebound in Crypto Market

Billionaire entrepreneur Elon Musk made a significant statement regarding Bitcoin, breaking his silence on the cryptocurrency after several years. Musk praised Bitcoin for its foundation on energy, highlighting its authenticity compared to fiat currency. This endorsement comes at a crucial juncture as the cryptocurrency market grapples with concerns of a major downturn. Traders swiftly reacted to Musk’s remarks, leading to a notable uptick in the price of Bitcoin.

Elon Musk’s acknowledgment of Bitcoin occurred on October 14, where he emphasized the importance of energy in the creation of Bitcoin. In response to a post by zerohedge discussing the surge in gold, silver, and Bitcoin prices amidst the “debasement trade” for financing the AI arms race, Musk underscored the significance of energy in the context of Bitcoin. He also alluded to the ongoing global AI arms race, predicting that government funding from countries like the U.S. and China would play a pivotal role in this competition.

Musk’s views on the U.S. government’s monetary policies were also articulated, with him expressing concerns about the continuous printing of money by the government. He referred to the government’s actions as utilizing “magic money computers” and issued warnings about the soaring $37 trillion U.S. national debt. Despite his previous criticisms of Bitcoin’s energy consumption, Musk’s recent pro-Bitcoin stance signals a notable shift in his perspective. While he has predominantly focused on promoting Dogecoin, even hinting at integrating DOGE into X Money, Musk is now considering launching a pro-Bitcoin political party in the United States.

Following Elon Musk’s endorsement of Bitcoin, the cryptocurrency experienced a cautious rebound in its price, currently hovering around $112,011. Throughout the past 24 hours, the price of Bitcoin fluctuated between a low of $111,569 and a high of $116,020. Moreover, there has been an 18% decline in trading volume within the same period, indicating a waning interest among traders ahead of FED Chair Jerome Powell’s upcoming speech.

Data from CoinGlass revealed a surge in buying activity in the BTC derivatives market in recent hours. The total open interest in BTC futures spiked by 0.1% to $72.98 within an hour, although it had decreased by 1.30% in the past 4 hours and nearly 3.50% in the last 24 hours. This dynamic trading environment underscores the impact of Musk’s endorsement on the cryptocurrency market and reflects the ongoing volatility in the sector.