Tesla billionaire Elon Musk, which surprised traders with a shock approval of bitcoin this weekhas repeatedly warned in recent weeks that The US is teetering on the brink of “bankruptcy”.

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The price of bitcoin has rallied this year as fears over its spiraling $35.7 trillion debt pile push the price of gold to an all-time high.with the Federal Reserve caught in a “nightmare” scenario..

Now, Musk, who is working overtime to get “Crypto President” Donald Trump back at the White House, called the US government’s $1 trillion-a-year interest payments a “financial emergency” because inflation fears push another legendary investor to buy bitcoin and gold.

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“Debt interest payments alone account for 23 percent of all federal tax revenue,” Musk said during a Trump campaign rally later. calling the situation a “financial emergency” on X. “Interest payments now exceed the Defense Department’s budget, which is $1 trillion a year. It’s a lot of money.”

The price of bitcoin has bounced back just below an all-time high of $70,000 per bitcoin this year, rising alongside the price of gold as investors bet that higher interest rates combined with a huge increase in deficits will create a feedback loop, forcing governments to print more money.

Tesla continues to hold about 10,000 bitcoins — sometimes called digital gold — worth nearly $800 million on its balance sheet as of last week. sparking fears he may be about to cash out when he suddenly moved his bitcoin to new wallets.

The US national debt has skyrocketed in recent years, surpassing the $34 trillion mark in early 2024, largely due to Covid and lockdown stimulus measures that have spiraled inflation and forced the Reserve Fed to raise interest rates to historic high.

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Earlier this year, Bank of America analysts warned that the stock of US debt was on track to add $1 trillion every 100 days.could fuel a bitcoin price rally— and could reach $36 trillion by the end of 2024.

This week, legendary billionaire investor Paul Tudor Jones warned that “all roads lead to inflation”. recounting CNBC that he is “long gold” and “long bitcoin” as a result.

“Under Trump, the deficit is growing by $500 billion a year; under (Vice President Kamala) Harris’ plan, it’s growing by another $600 billion a year. I feel like this is all just a dream,” said Tudor Jones. , which earlier this year ADVISED of a “debt bomb” in the US as a result of “fiscal imprudence”.

In 2020, Tudor Jones helped kick-start the Bitcoin and cryptocurrency bull run of the Covid era when he became one of Wall Street’s early bitcoin advocates, calling it “the fastest horse to beat inflation.”