Elon Musk Backs Bitcoin in America Party Launch, Market Reacts

The world’s richest man says Bitcoin will be part of the official platform of his new “America Party,” sending BTC close to the $110,000 mark earlier today. The move comes just days after Musk broke away from the Republican Party over a controversial budget bill pushed by Donald Trump.

When asked if his new party would support Bitcoin, Musk replied: “Fiat is hopeless so yes.” 

That one sentence was enough to set off a fresh wave of excitement in the market. This is big news. Here’s what you should know. 

Bitcoin Gets Political

Musk’s statement is already being seen as a major moment for Bitcoin in U.S. politics. Dennis Porter, CEO of the Satoshi Action Fund, called it “massive,” saying Musk had officially made Bitcoin part of the America Party’s platform.

The Republican Party has also been pushing pro-crypto policies, but Musk’s entry could shift the conversation further. After all, he’s putting it on a political agenda.

And that could change a lot for the crypto industry, perhaps more than what Trump has already been able to do. 

Dogecoin Jumps

As expected, Dogecoin (DOGE) also reacted. The meme coin, often backed by Musk, jumped nearly 6% after the news. Bitcoin, meanwhile, saw a steady climb toward $110K.

It’s worth noting: Tesla still holds over 11,500 BTC, valued at more than $1.2 billion, making it one of the top corporate holders of Bitcoin.

What Happened Between Trump and Musk?

This Bitcoin announcement is also tied to a deeper story – Musk’s growing feud with Donald Trump.

He recently slammed Trump’s “One Big Beautiful Bill,” a major tax and budget policy expected to add $3.3 trillion to the U.S. debt. Musk called the bill “utterly insane and destructive,” and argued it would kill jobs and hurt the country’s future. Important to note is that the bill would kill the EV Mandate, which is essential for a company like Tesla. Trump even threatened Musk with sending him back to South Africa. 

It was recently passed by Congress despite Musk’s protests. 

After a poll that drew over 1.2 million votes, Musk officially announced the launch of the America Party, saying the U.S. needs a political movement that “actually cares about the people.”

Trump responded by attacking Musk, calling the move “ridiculous”.

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Will Musk Run for President?

Now let’s be clear – Trump just secured a second term in December 2024. So, Musk isn’t headed for the Oval Office anytime soon. 

But if the American Party gains momentum, especially by 2026 or 2028, Musk could turn Bitcoin into a serious political issue in the U.S.

That would bring both opportunities and challenges for crypto. On one hand, it could drive more adoption and awareness. On the other, it could also lead to tighter regulations as crypto becomes part of national politics.

Bottom line: when Musk speaks, markets listen. Let’s see what direction this story takes.

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