At the All-In Summit held on September 10, 2025, Elon Musk discussed the rising U.S. national debt, which has surpassed $37 trillion. He noted that interest payments now exceed defense spending, raising concerns about financial stability.
Musk's Warning on Debt Payments Exceeding Defense Budget
During his interview at the All-In Summit, Elon Musk stated that the national debt of the U.S. has reached $37 trillion, and interest payments now exceed the Department of Defense budget. "If you look at our national debt, which is insanely high, the interest payments exceed the War Department budget... So, if AI and robots don't solve our national debt, we are toast," Musk pointed out.
Historical Debt Context and Its Influence on Cryptocurrencies
Historically high debt levels in the U.S. have triggered volatility in financial markets. In 2011, during the debt ceiling crisis, the downgrade of the U.S. credit rating had a tangible impact, causing heightened volatility in global markets, including cryptocurrencies. As of September 12, 2025, Bitcoin's price was reported at $115,629.17.
Market Prospects for Cryptocurrencies Amid Debt Crisis
According to analysts, Musk's warning may indirectly pressure market participants. Historical trends show that persistent concerns about debt have led to increased cryptocurrency adoption as a hedge. Potential financial risks may heighten interest in assets such as Bitcoin and Ethereum.
Elon Musk's warning about the state of the national debt and its implications underscores the need for careful monitoring of the economic situation in the U.S. Cryptocurrencies may play a crucial role in response to potential financial threats.
