Elon Musk has announced support for Bitcoin as part of his new political party platform, emphasizing the growing intersection of cryptocurrencies and politics.
Musk's Support for Bitcoin
Elon Musk has confirmed that his newly announced America Party will support Bitcoin adoption as part of its financial agenda. This statement followed a query from an X user asking if the party would embrace Bitcoin as a hedge against inflation. Musk responded, 'Fiat is hopeless, so yes,' indicating a clear shift away from traditional currencies.
Tesla and SpaceX Long-Term Holdings
Tesla Inc., one of Musk's main enterprises, has held 11,509 BTC since February 2021. SpaceX, which is also led by Musk, holds 8,285 BTC, with a cumulative value well above the $1 billion mark. These holdings indicate Musk's long-term trust in Bitcoin's use as a store of value. It is also anticipated that Tesla may restart accepting Bitcoin payments for electric cars, contingent on the use of renewable energy sources by miners.
Market Reaction to Bitcoin Support
Bitcoin's price reacted quickly to Musk's endorsement, climbing to a daily high of $109,574 before retreating to around $108,816. This price movement occurred during early London hours and reflects renewed investor confidence. According to CryptoQuant statistics, the BTC MVRV ratio has been restored to its 365-day average, indicating potential bullish activity as institutional demand gains strength.
Musk's endorsement of Bitcoin as part of the America Party platform marks a significant moment in the intersection of politics and digital finance, reinforcing Bitcoin's growing relevance as both a financial asset and a policy tool.
