Elon Musk’s fiery reaction to a controversial Republican-backed spending bill has reignited speculation that Tesla may increase its Bitcoin holdings. His comment comes shortly after Trump gave Musk a public Oval Office send-off, ending his role as head of the Department of Government Efficiency (DOGE).
The bill, which proposes massive tax cuts for corporations and the wealthy, is expected to add $3.8 trillion to the U.S. national debt over the next decade. XRP advocate John Deaton believes this economic direction could encourage Musk and Tesla to adopt Bitcoin further. Elon and Tesla already hold 11,509k BTC; based on Deaton’s prediction, they could add more BTC as a hedge against government spending.
Deaton, who has previously taken on crypto-skeptic lawmakers like Senator Elizabeth Warren, didn’t mince words. He called the bill a “walking advertisement for Bitcoin,” implying that continued inflation and reckless fiscal policies could make decentralized assets more attractive to institutions like Tesla.
Musk himself didn’t hold back, labeling the bill a “disgusting abomination.” Senator Rand Paul also agreed with Elon Musk, highlighting concerns about an additional $5 trillion in debt and wasteful government spending. Though the bill still faces significant hurdles in the Senate, its potential to worsen inflation has raised alarm bells even among traditional economists. Notably, gold advocate Peter Schiff warned the bill would drive inflation higher by deepening deficits and weakening the dollar.
Adding to that, Representative Marjorie Taylor Greene raised an issue about a provision, apparently on pages 278-279 of the bill, that would prevent states from regulating Artificial Intelligence (AI) for 10 years. She’s concerned this infringes on states’ rights and gives too much control over AI to the federal government, especially when the full capabilities of AI aren’t yet understood.
Tesla first made headlines with a $1.5 billion Bitcoin investment in 2021. While the company has sold portions of that stash, it still holds approximately $1.2 billion in BTC, according to Arkham Intelligence. Musk hasn’t hinted directly at new purchases, but with inflation concerns mounting and fiat skepticism growing, analysts say the door is open for Tesla to reload.
As of now, Tesla holds around 11,509 BTC, valued at approximately $1.2 billion according to Arkham Intelligence.
A U.S. budget bill proposing tax cuts and spending changes, projected to add $3.8 trillion to the national debt over a decade.
Analysts suggest Tesla could increase Bitcoin holdings as a hedge against inflation from rising government debt.
Pi Network's GCV has become one of the most discussed topics in the community lately.…
The cryptocurrency market is taking a hit today, with major players like Bitcoin, XRP, Ethereum,…
XRP is currently down by more than 5% and is trading at $2.06 at the…
The crypto market recorded more than $831 million in forced liquidations during the past 24…
Solana is pulling back into key support levels, as the selling volume is causing the…
The XRP price is currently facing immense selling pressure, which has dragged the levels below…
