Elon Musk Says Newly Formed America Party Will Support Bitcoin

Elon Musk, the billionaire CEO of Tesla and SpaceX, has announced that his newly formed America Party will support Bitcoin, signaling a bold stance on cryptocurrency as part of his political vision.

The announcement came on Sunday via Musk’s social media platform X, where he responded to a user’s query about the party’s position on Bitcoin with, “Fiat is hopeless, so yes.” This move aligns with Musk’s ongoing criticism of traditional financial systems and his push for decentralized alternatives. The America Party, launched on Saturday, aims to disrupt the entrenched Republican-Democratic duopoly in U.S. politics, a system Musk describes as failing the American people.

The formation of the America Party follows a highly publicized rift between Musk and former ally President Donald Trump over the recently signed $3.4 trillion “Big Beautiful Bill.” Musk, who previously led the Department of Government Efficiency (DOGE) to reduce federal spending, fiercely opposed the bill, calling it a “disgusting abomination” that would exacerbate the U.S. deficit.

America Party’s Vision and Bitcoin’s Role

Musk’s America Party is positioning itself as a counterforce to what he calls a “one-party system” riddled with “waste and graft.” In a Saturday post on X, Musk declared, “When it comes to bankrupting our country, we live in a one-party system, not a democracy. Today, the America Party is formed to give you back your freedom.” The party’s strategy, as outlined by Musk, involves targeting a small number of congressional seats, specifically two to three Senate seats and eight to ten House districts. By leveraging the tight margins in Congress, the America Party aims to act as a pivotal voting bloc, ensuring legislation reflects the “true will of the people.” This focused approach underscores Musk’s intent to wield influence without necessarily building a sprawling political machine.

The embrace of Bitcoin fits into Musk’s broader critique of fiat currency and unchecked government spending. His comment that “fiat is hopeless” echoes sentiments popular among cryptocurrency advocates who view Bitcoin as a hedge against inflation and fiscal irresponsibility. Musk’s history with Bitcoin is notable; Tesla briefly accepted Bitcoin as payment in 2021 and holds significant amounts of the cryptocurrency on its balance sheet. By aligning the America Party with Bitcoin, Musk is likely appealing to a growing demographic of crypto enthusiasts disillusioned with traditional financial systems. This stance also differentiates the party from established political factions, which have been slower to embrace digital currencies.

The feud with Trump has added fuel to Musk’s political ambitions. Trump, responding on Truth Social, dismissed the America Party as “ridiculous,” arguing that third parties have historically failed in the U.S. and accusing Musk of going “completely off the rails.” The tension stems from Musk’s opposition to the $3.4 trillion spending bill, which he claims will balloon the national debt to unsustainable levels. The Congressional Budget Office estimates the bill will add $3.3 trillion to the deficit over the next decade, a figure Musk has repeatedly cited in his critiques. This dispute marks a sharp departure from Musk’s earlier support for Trump, including his $277 million contribution to Trump’s 2024 campaign and his role in DOGE.

Musk’s endorsement of Bitcoin could have broader implications for the cryptocurrency market. Analysts note that Bitcoin has historically rallied after significant government spending bills, with a 38% surge following a 2020 spending package. Some predict that the current bill, combined with Musk’s vocal support, could push Bitcoin’s price toward $150,000 if historical patterns repeat. However, the America Party’s success remains uncertain. Third parties face formidable barriers in the U.S.’s winner-takes-all electoral system, and Musk has yet to outline specific policies or a formal party structure. For now, the America Party’s pro-Bitcoin stance and Musk’s high-profile feud with Trump are keeping it in the spotlight, with implications for both politics and the crypto market.